> For the complete documentation index, see [llms.txt](https://compound-coin.gitbook.io/whitepaper/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://compound-coin.gitbook.io/whitepaper/about-token/buy-and-sell-fee.md).

# Buy and Sell Fee

Compound Protocol buy and sell fees are critical part of the $CProtocol Auto-Staking. They provide capital for performing critical functions to the protocol as noted in the How does It work? section of this White Paper.

Other protocols utilize selling bonds to support the same functions as Compound Protocol fees, but we believe that approach is riskier because if bonds are not purchased, the token can lose its support and spiral downward in price as we have seen with several of these bond-based protocols.

Selling bonds also cost token holders. It reduces the amount of Compound Protocol that can be offered and eliminates the ability to offer a stable APY.

One additional benefit of the high fees is that Compound Protocol is the only token that benefits when Whales dump because the fees collected support $CProtocol holders.

<mark style="color:green;">**Buy 14%**</mark>

* 5% Treasury Funds
* 4% LP
* 3% Insurance Funds
* 2% Fire Pit

<mark style="color:green;">**Sell 16%**</mark>

* 6% Treasury
* 4% LP
* 4% Insurance
* 2% Fire Pit

<mark style="color:green;">**LP**</mark> <mark style="color:green;"></mark><mark style="color:green;">-</mark> Trading fees go to backing the liquidity of the BNB/$CProtocol pair on PancakeSwap ensuring an ever-increasing collateral value of $CProtocol.

<mark style="color:green;">**SIF**</mark> <mark style="color:green;"></mark><mark style="color:green;">-</mark> Trading fees are stored in the $CProtocol Insurance Fund which helps sustain and back the staking rewards provided by the positive rebase.

<mark style="color:green;">**Treasury**</mark> <mark style="color:green;"></mark><mark style="color:green;">-</mark> Trading fees go directly to the treasury which supports the $CProtocol Auto-Staking Protocol and provides a marketing budget for $CProtocol and funds new product development.

<mark style="color:green;">**Fire Pit**</mark> <mark style="color:green;"></mark><mark style="color:green;">-</mark> 2% from every transactions of  $CProtocol are burnt in the Fire Pit. The more that is traded, the more get put into the fire causing the fire pit to grow in size, larger and larger through self-fulfilling auto-compounding which in return acts to reduce the circulating supply of $CProtocol and keep the $CProtocol protocol stable.