# 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](https://docs.avantisfi.com/trading/trading-fees-fixed-fee-perpetuals) 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](https://docs.avantisfi.com/liquidity-providers/risk-management) 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.