> For the complete documentation index, see [llms.txt](https://roostlaunch.gitbook.io/roost-docs/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://roostlaunch.gitbook.io/roost-docs/use-roost/fees-and-economics.md). # Fees and economics Roost markets are powered by Uniswap V4. In V4, a pool’s behaviour can be extended with a hook contract, and Roost uses this to give every token its own fee engine. Above the pool’s own Uniswap V4 fee, the market’s hook captures everything taken on a trade, which is what makes the token dev’s share fully customizable. Every trade carries two fee components: a fixed 1% base fee and the trading tax set by the token dev. *** #### The base fee: 1% A fixed 1% base fee applies to every trade on every Roost market. It is charged in the market’s payment token and collected at the same time as the trading tax. The Uniswap V4 pool fee of 0.167% comes out of the base fee first. What remains, 0.833%, is split 50/50 between the token creator and the platform, so each receives 0.4165% of the trade.

Share	Rate	Recipient
Uniswap Fees	0.1670%	Uniswap v4
Creator share (50% of remainder)	0.4165%	Token creator
Platform share (50% of remainder)	0.4165%	Roost protocol
Base fee total	1%

The base fee is identical for every token. It is not set by the creator, and it cannot be changed or removed. The Uniswap V4 fee is paid to the pool, not to Roost. *** #### The trading tax: 0% to 9% The token dev sets the trading tax at launch, anywhere from 0% to 9%. This is the customizable component, and where it flows depends on the launch mode the creator chooses. The current rate is always shown on the token page and in the trade quote before signing.

*** #### Total cost of a trade The two components add together. A token with a 1% trading tax costs 2% per trade in total, because the 1% base fee applies on top. The maximum any trade can pay is 10%.

Trading tax set by dev	Base fee	Total taken per trade
0% (minimum)	1%	1%
2%	1%	3%
5%	1%	6%
9% (maximum)	1%	10%

Gas is separate and paid to the network. Beyond gas, Roost charges no launch fee, no listing fee and no withdrawal fee. *** #### Two launch modes What happens to the trading tax depends on the mode the creator chooses at launch. The 1% base fee sits outside both modes: its Uniswap V4, creator and platform shares are paid the same way in either mode, and designated wallets and vaults receive the trading tax only. Creator mode. The trading tax is routed to wallets designated by the creator, and the creator can update the rate and its allocation over time, always within the 1% to 9% range. Creator mode suits teams that want direct, flexible control: routing fees to a treasury, a marketing wallet, contributors, or any split of designated wallets. Every change is onchain and visible. Vault mode. The entire trading tax enters the token’s vault, and control shifts from the creator to the market. From the vault, users choose between two automated uses for the accumulated fees: • Buyback and burn. The vault uses collected fees to buy the launch token back from its own pool and burn it. Supply falls as volume grows, so active trading directly tightens the float. • Payment token airdrop. The vault distributes the collected payment token (ETH or the market’s Stock Token) to holders, turning real trading activity into ongoing yield for the people who hold the token. Vault mode suits communities that want the fee stream locked to the token’s own ecosystem rather than to any individual wallet. *** #### Worked example Take a token launched with a 5% trading tax, and a 1 ETH buy.

Component	Amount	Destination
Base fee, Uniswap V4 (0.167%)	0.00167 ETH	Uniswap V4 pool
Base fee, creator share (0.4165%)	0.004165 ETH	Token creator
Base fee, platform share (0.4165%)	0.004165 ETH	Roost protocol
Trading tax (5%)	0.05 ETH	Creator wallets or vault
Total taken (6%)	0.06 ETH

The 0.01 ETH base fee is paid on every trade: 0.00167 ETH to the Uniswap V4 pool, then the remaining 0.00833 ETH split evenly between the creator and the protocol. The 0.05 ETH trading tax flows to the creator’s designated wallets in creator mode, or into the vault in vault mode, where it is deployed as buyback and burn or as a payment token airdrop to holders, as chosen by users. --- # Agent Instructions This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com. ## 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, and the optional `goal` query parameter: ``` GET https://roostlaunch.gitbook.io/roost-docs/use-roost/fees-and-economics.md?ask=&goal= ``` `ask` is the immediate question: it should be specific, self-contained, and written in natural language. `goal` is optional and describes the broader end goal you are ultimately trying to accomplish on behalf of the user. GitBook uses it to tailor the answer towards what is most useful for that goal. 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.