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

# Fees

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Inverter Protocol adopts a simplified yet flexible fee structure to facilitate both ease of use and adaptation to diverse operational needs within the protocol.

### Fee Strategy

The protocol employs a two-tier fee system consisting of:

* Global Default Fee
* Workflow-Specific Fee

**Note:** Not all functions incur fees. Function which collect fee have to have this feature added explictly.

#### Global Default Fees

These baseline fees percentages are applied across the functions implementing a fee deduction, unless overridden by specific conditions.

* **Default Collateral Fee:** Applies to transactions involving collateral, such as depositing collateral to mint the issuance token or other collateralized operations.
* **Default Issuance Fee:** Applies to transactions involving the workflow's issuance token, such as redeeming the issuance token for collateral.

#### Workflow-Specific Fees

The protocol allows for fee customization on a per-workflow, per function basis to accommodate diverse needs within the ecosystem. This flexibility ensures fees can be tailored to specific economic and operational conditions.

* **Collateral Workflow Fee:** This fee can be set for specific workflow functions to handle collateral differently than standard operations.
* **Issuance Workflow Fee:** Similar to collateral fees, issuance fees can also be adjusted for particular workflow functions.

#### Fee Decision Logic

A clear and streamlined process determines which fee to apply:

1. **Workflow-Specific Check:** The system first checks if a workflow-specific function fee has been set for the.
2. **Global Default Fallback:** If no specific setting is found, the transaction defaults to the global fee.

This approach minimizes complexity while offering the flexibility to address specific scenarios effectively.

### Governance of Fee Settings

Control over fee settings is rigorously governed to align with broader community interests and protocol security standards. See our dedicated [Governance](/concepts/protocol-concepts/governance.md) page for more information.