# Revenue Distribution There are two major sources of revenues in Avantis: 1. Trading fees: Dynamic open fees, close fees and margin-fees, as explained in detail in the [fees](/trading/trading-fees-fixed-fee-perpetuals.md) section 2. Vault Deposit / Withdraw fees: LPs may be charged a deposit or withdraw fee, which varies based on the protocol health and an LP's lock duration. These are explained in detail in the [risk management](/liquidity-providers/risk-management.md) section ### Liquidity Providers: 100% LPs represent the supply side of the protocol, and are hence compensated for the work they put in as market makers. LPs currently receive 100% of open , close, win and margin fees ! LPs also take counter-trading risk against traders. ### Protocol Treasury: 0% A portion of the protocol treasury will go towards everything related to protocol liquidity. This includes protocol owned liquidity for the USDC vault, sponsoring trading competitions and rewards campaigns (see [this example](https://x.com/avantisfinance/status/1792614141536120970)), giving trader rebates, sponsoring gas, and insuring LPs in case of unforeseen protocol losses. Currently the protocol only receives liquidation fees, and LPs receive 100% of fees. This is to encourage the growth of sticky TVL, which in-turn generates more open interest and liquidity, attracting more traders. We hope to 10x Avantis' traction via this flywheel in the coming months. --- # 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://docs.avantisfi.com/rewards/revenue-distribution.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.