# Fees & Revenue Lynxify's approach to revenue is straightforward: we earn from the tools and automation we build, not from the returns that belong to you. The LP yields, staking rewards, and swap fees generated by the treasury are yours as a LYNX holder — we don't take a cut of those. Our revenue comes from the additional value our systems create. *** ### Automated Rebalancing Fee #### What automated rebalancing does Providing liquidity to a trading pool isn't a set-and-forget activity. As prices move, your position drifts — the ratio of assets shifts, and without active management you can end up earning less than you should, or even losing ground to impermanent loss. Lynxify's automated rebalancing handles this continuously. It monitors LP positions in the treasury and adjusts them to keep capital deployed efficiently — 24 hours a day, 7 days a week. As a LYNX holder, you benefit from this without having to watch prices, log in at specific times, or understand the mechanics of LP management yourself. The automation does that work on your behalf. #### The fee **Lynxify charges a 7.5% fee on the profits generated by the automated rebalancing.** This fee is taken from what the rebalancing automation earns through its activity — not from your underlying LP returns, and not from your principal. The yield your position generates from the pools themselves flows back to you in full. The 7.5% applies only to the additional profits the rebalancing system produces through its own operation. To put it concretely: if the automated rebalancing generates $100 in a given period, $7.50 goes to the protocol and $92.50 flows back to the vault, benefiting all LYNX holders proportionally. {% hint style="info" %} There is no fee on holding LYNX, no fee on burning, and no fee on the LP or staking yields the treasury earns from the market. The rebalancing fee applies only to what the automation itself produces — because that's the tool Lynxify built and maintains. {% endhint %} #### Why this model Taking a percentage of the automation's profits rather than a flat fee or a percentage of AUM means Lynxify's incentives are aligned with yours. We earn more when the system performs well, and less when it doesn't. If the rebalancing isn't generating returns, no fee is collected. *** ### Arbitrage Revenue #### How it works LYNX has a **mint price** — the net asset value of the underlying basket at any given moment. On the open market, the trading price of LYNX can drift above this figure during periods of high demand. When the market price rises significantly above the mint price, there's an arbitrage gap: LYNX is trading at a premium to what it's actually worth in underlying assets. Lynxify's arbitrage system detects this gap and automatically executes a corrective trade. The size of the trade scales with the size of the gap — a larger deviation triggers a larger correction. This keeps the market price of LYNX tethered to its true value. Without it, buyers on the open market could overpay significantly during demand spikes, and the gap between market price and NAV would compound over time. #### Revenue from arbitrage When a corrective trade is executed, the difference between the market rate and the mint price represents a profit. That profit currently flows to the Lynxify protocol. **This revenue stream is expected to shrink over time — and that's a good thing.** As the LYNX pool grows deeper and the protocol migrates to SaucerSwap V2 (which uses concentrated liquidity), the gap between market price and mint price will naturally stay much tighter. Deeper liquidity means deviations get corrected by the open market itself — other traders will start capturing these opportunities as they arise. A decline in arbitrage revenue is a sign of a maturing, liquid protocol. It's a meaningful income source in the early stages and a smaller one as the ecosystem grows around LYNX. #### Why this matters for you as a holder The primary purpose of this system is price fairness, not revenue. Anyone buying LYNX on the open market benefits from a price that accurately reflects the underlying assets — they're not overpaying because of a temporary demand spike. The revenue is a byproduct of keeping that guarantee in place. --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://lynxify.gitbook.io/lynxify-docs/fees-and-revenue.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.