> For the complete documentation index, see [llms.txt](https://harmonic-protocol-1.gitbook.io/documentation/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://harmonic-protocol-1.gitbook.io/documentation/rewards-and-fees.md).

# Rewards & Fees

#### Fee Structure

Harmonic applies a **1% fee** on every executed buy or sell through the dApp.

An aditional **1% fee** is split between:

* **Validators**, based on how much $HARMO they hold.
* **The Harmonic Treasury**, which receives the unclaimed portion when validators don’t hold enough tokens.

Please note that you can execute buy or sell orders through a **trading bot**, but a **5% fee** will be applied. 4% will be distributed to validators as rewards, and 1% will go to the harmonic treasury.

#### Validator Rewards

Validators earn a share of each transaction they process, determined by their $HARMO holdings following this linear calculation :

| Holding (% of $HARM supply) | Reward (% of trade amount in USDC) |
| --------------------------- | ---------------------------------- |
| 0.05%                       | 0.1%                               |
| 0.5%                        | 1.0% (max)                         |

If a validator holds less than 0.5% of the supply, the remaining fee goes to the Harmonic Treasury.

**Example:**

If you hold 0.2% of $HARM supply and validate a $1,000 trade, you earn **$4 USDC + the tip.**

#### Holder Benefits

Holding $HARMO directly increases your income as a validator.

The more you hold, the greater is your cut of each transaction you confirm.

Holders also strengthen the protocol’s decentralization and ensure a fairer distribution of fees between active participants.


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