Baseline charges fees on trades that flow back to the token's balance sheet. Every trade increases the floor price, making trading activity directly strengthen the token's value.

## How Fees Work

Fees adapt based on where the trade occurs relative to the floor price:

**On Sells:**

* Fee charged on the **premium portion** (above BLV)
* Higher premiums pay higher fees
* Distressed sells near the floor pay almost nothing

This protects sellers who need to exit during market stress. If you're selling near the floor, you're already taking a loss - the fee structure doesn't punish you further.

**On Buys:**

* Fee charged on the **BLV portion**
* Consistent fee capture on the stable component

This ensures consistent revenue capture regardless of where the price is trading above the floor.

## Benefits of Fees

* **Floor Growth**: Fees accumulate in backing reserves, permanently raising BLV with every trade.
* **Revenue Generation**: The token monetizes its own trading activity instead of paying market makers.
* **Aligned Incentives**: More trading volume means higher floor prices for all holders.
* **Distressed Seller Protection**: Sellers near the floor pay minimal fees - no punishment for exiting during stress.