> ## Documentation Index
> Fetch the complete documentation index at: https://docs.anvil.markets/llms.txt
> Use this file to discover all available pages before exploring further.

# Fees & costs

> Understand compounding fees, pool fees, protocol shares, and network costs.

These are the selected launch settings. They are not a statement that production governance has already been initialized. Review the actual market and transaction before signing.

| Item                                | Selected setting                | Meaning                                                                                  |
| ----------------------------------- | ------------------------------- | ---------------------------------------------------------------------------------------- |
| Compounding fee                     | 2%                              | Share of rewards used in a compound                                                      |
| Default lending-pool swap fee       | 0.25% (25 basis points)         | Creator default; individual pools can differ                                             |
| Protocol share of pool swap fees    | 10%                             | A share of the swap fee, not 10% of the traded amount                                    |
| Protocol share of borrower interest | 15%                             | A share of interest, not a fixed 15% borrowing rate                                      |
| Protocol revenue allocation         | 100% to the buybacks allocation | Selected revenue destination; not a claim that ANVIL-token purchases are already running |

## Compounding example

With \$6 of eligible rewards and a 2% compounding fee, the fee is \$0.12 and \$5.88 remains before swap costs and any token transfer fees. The actual coin amount received depends on execution prices and the permitted output limits.

## Pool-fee example

On a \$100 swap at the default 0.25% fee, the swap fee is \$0.25. A 10% protocol share of that fee is \$0.025. Token taxes and other applicable execution costs are separate.

## Who pays SOL?

You pay for transactions you submit, such as setup, permission changes, revocation, market creation, deposits, borrowing, and withdrawals. Account creation may also require a rent-exempt SOL balance. The compounding keeper pays gas for the compound transactions it submits.

## Fee-funded liquidity

Fee recycling is a separate planned workflow: use earned compounding fees to acquire both sides of a matching ANVIL pool and add liquidity. It requires a configured, seeded pool and an enabled worker. It is not currently represented as active. Read the [roadmap](/protocol/roadmap).