Protocol Fees

Protocol fees are an integral component of Stryke, facilitating its operations, development, and reward mechanisms. This concise overview details the structure, allocation, and purpose of protocol fees within Stryke.

Users incur fees for executing transactions, such as trading options or providing liquidity, within Stryke. These fees are calculated as a percentage of the transaction value.

Protocol Fee Usage

Protocol fees are allocated across three main areas, each designed to support the Stryke's sustainability and growth:

• Staking Rewards (80%): A significant portion of the collected fees is redistributed as rewards to active participants, including liquidity providers and xSYK holders, incentivising continued engagement and contribution to the platform.

• Insurance Fund (10%): A designated percentage contributes to an insurance fund, which serves as a financial safeguard against unexpected events, such as smart contract vulnerabilities or market anomalies, ensuring the platform's resilience.

• Operational and Development Fund (10%): Fees also support the ongoing development and operational costs of the Stryke platform, funding technological advancements, security enhancements, and new integrations to maintain and improve Stryke's offerings.

The fee controller is responsible for managing the distribution of fees based on this structure.

Transparency and Reporting

Stryke emphasises transparency in its fee structure and allocations, providing regular reports accessible to all users and stakeholders. The frequently published "Treasury Performance report" can be found in our blog here.