Fee on Sonic

Sonic implements a fee structure for each order placed within the protocol. When an order is created, the sell order creator specifies the discount amount they wish to offer for the order. The fee discount provided by the order creator is then divided into two parts based on the predefined 'SplitFee' parameter in the smart contract.

The first part of the fee is allocated to the protocol itself, towards the ongoing development and maintenance of Sonic. This contribution to the protocol helps sustain and enhance the platform, benefiting all users in the ecosystem. The remaining portion of the fee is utilized to provide the discount to entities that fulfill the order. These entities, which can include liquidity providers or other participants, are rewarded with the discount as an incentive for fulfilling the order.

Currently, the SplitFee is set at 50%, meaning that half of the fee is directed to the protocol, while the other half is used to offer the discount to fulfilling entities. It's important to note that the SplitFee can be adjusted and updated in the future to accommodate changing requirements. This flexibility allows for the optimization of fee distribution and ensures a fair and efficient operation of the platform. By dividing the fee in this manner, Sonic establishes a balanced ecosystem where both the protocol and participating entities are incentivized and appropriately rewarded for their involvement.

Fee Type	Sonic	Description
Split Fee	50%	Percentage of the discount provided generated towards the order taker.

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