> For the complete documentation index, see [llms.txt](https://docs.libertyswap.finance/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.libertyswap.finance/liberty-pool/overview/trading-fee-distribution.md).

# Trading Fee Distribution

Trading fees generated through Liberty Pool are distributed according to the following allocation model:

| **Allocation** | **Distribution**                                                           |
| -------------- | -------------------------------------------------------------------------- |
| 80%            | Distributed to liquidity providers                                         |
| 10%            | Used to acquire PCOCK from the open market for the PCOCK Strategy treasury |
| 10%            | Used to acquire and permanently burn PCOCK                                 |

***

### Liquidity Provider Rewards

Liquidity providers receive the majority of protocol-generated trading fees.

Fee earnings are proportional to:

* active liquidity position size
* selected price range
* pool trading activity
* duration of active liquidity participation

Only liquidity active within the current market range is eligible to receive fees.

***

### PCOCK Buyback Mechanism

A portion of protocol revenue is used to acquire PCOCK tokens from the open market.

These acquired tokens are allocated to the PCOCK Strategy treasury in order to support broader ecosystem initiatives and treasury-backed protocol activities.

***

### PCOCK Burn Mechanism

An additional portion of trading fees is used to repurchase and permanently remove PCOCK tokens from circulation.

This mechanism introduces a continuous deflationary component tied directly to protocol activity and trading volume.