> For the complete documentation index, see [llms.txt](https://docs.camelot.exchange/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.camelot.exchange/tokenomics/protocol-earnings.md).

# 🏦┃Protocol earnings

The protocol transaction fees are distributed as follows:

## V2

<figure><img src="/files/2Z4R5K6tKauX811fGo5j" alt=""><figcaption></figcaption></figure>

* 60% for Liquidity Providers in LP tokens
* 22.5% redistributed to xGRAIL holders through [Real Yield Staking](/protocol/xgrail-plugins/real-yield-staking.md) plugin
* 12.5% dedicated to GRAIL buyback and burn
* 5% to the Operating expenses

## V3

<figure><img src="/files/SBcY8JpGg368uEjKg0L8" alt=""><figcaption></figcaption></figure>

* 85% for Liquidity Providers in LP tokens
* 7% redistributed to xGRAIL holders through [Real Yield Staking](/protocol/xgrail-plugins/real-yield-staking.md) plugin
* 3.5% dedicated to GRAIL buyback and burn
* 3% to the Operating expenses
* 1.5% to Algebra for licensing [V3 AMM](/protocol/amm-v3.md)

## V3 vaults

<figure><img src="/files/ljS13nAmA7AYIdSEPo3A" alt=""><figcaption></figcaption></figure>

Camelot also receives a portion of the fees from Gamma’s vaults, \~⅓ of a 25% performance fees, i.e., 8% of the total, split between:

* 5% redistributed to xGRAIL holders through [Real Yield Staking](/protocol/xgrail-plugins/real-yield-staking.md) plugin
* 3% to the Operating expenses

This ultimately leaves Gamma with 13.25% of gross fees generated by their vaults.