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

# Fees & Economics

This page explains how fees work on Bound, who earns them, and when they apply.

**Fees are designed to align projects, participants, and the platform — not to maximize extraction.**

***

## Overview

Bound may charge fees related to:

* Binding tokens
* Distributing rewards
* Promoting hubs

Fee structure varies by hub tier and is enforced by smart contracts.

***

## Deposit Fees

A **deposit fee** may apply when users bind tokens to a hub.

Deposit fees:

* Are calculated as a percentage of the bound token amount
* Are defined within fixed ranges enforced by smart contracts
* May be configurable by hub owners, depending on tier

### Who Earns Deposit Fees

Depending on the hub tier:

* A portion of deposit fees may go to Bound
* A portion may be shared with the hub owner
* In some tiers, hub owners may receive none or all of the deposit fees

Deposit fees are incurred **at the time of binding** and are non-refundable.

***

## Performance Fees

A **performance fee** may apply to rewards distributed through a hub.

Performance fees:

* Are calculated as a percentage of rewards distributed
* Apply only when rewards exist
* Are enforced automatically by smart contracts

Performance fee rates vary by hub tier.

***

## Featured Spots

Hubs may optionally pay for **featured placement** on the platform.

Featured spots:

* Increase hub visibility
* Are time-limited
* Do not affect rewards or binding mechanics

Featured placement does **not** imply endorsement by Bound.

***

## What Fees Do Not Do

Fees do **not**:

* Give hub owners custody of user funds
* Guarantee rewards or outcomes
* Change binding or unbinding rules
* Affect reputation or status logic

Fees relate only to **economic flows**.

***

## Transparency & Enforcement

All fees:

* Are disclosed before transactions occur
* Are enforced by smart contracts
* Cannot be changed retroactively

Users should review fee details before binding or claiming rewards.

***

## Design Intent

Fees are intended to:

* Support long-term platform sustainability
* Allow projects to monetize commitment responsibly
* Avoid hidden or surprise costs

Clear economics build trust.

***

## In Summary

* Deposit fees apply when binding
* Performance fees apply when rewards are distributed
* Featured spots affect visibility only
* Fee ranges and logic are enforced on-chain