> For the complete documentation index, see [llms.txt](https://prospect-labs.gitbook.io/prospect/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://prospect-labs.gitbook.io/prospect/usdchamp/token-design/fees.md).

# Fees

The protocol generates fees in the following ways:

1. **LP Fees:** $CHAMP is deployed into a 1% Uniswap V3 pool, which means swaps pay 1% when swapping in/out of the pool. This fee goes directly to increasing the BLV. Uniswap V3 fee tiers can be found [here](https://docs.uniswap.org/concepts/protocol/fees).
2. **Liquidity Rebalancing Fees:** the protocol rebalances reserves from discovery into floor and anchor when `sweep()` is called. These reserves go toward increasing the BLV.
3. **Borrow Fees:** users pay a one-time per-diem fee when they open or extend a borrow position. This fee goes directly to increasing the BLV.

The team generates fees in the following way:

1. **Liquidity Rebalancing Fees**: during the `sweep()` rebalancing, the protocol directs 10% of **surplus** capacity (in bAsset terms) to team multisig.