> ## Documentation Index
> Fetch the complete documentation index at: https://docs.area.club/llms.txt
> Use this file to discover all available pages before exploring further.

# Protocol Fee

> Understanding the cost of using Area

Area’s fee model is designed with two key components: **management fees** and **rewards fees**. This structure funds ongoing development while aligning incentives with \$AREA token holders.

## Management Fee

A **0.1%** management fee is applied to user deposits.

This fee helps cover the protocol’s operational costs, including development, maintenance, and security. The fee rate may be adjusted through governance, depending on Total Value Locked (TVL) and protocol growth.

## Rewards Fee

For each AVS' direct liquid restaking product, a variable rewards fee is applied to the rewards generated. The initial rewards fee is set at **10%**, with adjustments governed by community decisions based on total rewards, AVS performance, and market conditions.