# Trading Fees

Certain interactions on Polarise generate trading fees as users allocate participation across different options within interactive assets.

Trading fees are collected automatically by the protocol and distributed according to ownership and creation rules defined at the time the activity occurs. Fee allocation is continuous and does not require manual settlement.

#### Who Receives Trading Fees

By default, trading fees generated within an interactive asset are assigned to the asset’s creator.

If the asset is minted as an NFT, the trading fees are instead directed to the current NFT holder at the time the activity occurs. This allows ownership of future fee streams to be transferred while preserving continuity of the underlying content and interaction.

If an asset is not minted as an NFT, trading fees continue to flow directly to the original creator.

#### Fee Ownership and Transfer Timing

Trading fees are distributed based on **ownership at the moment the fee is generated**.

When an NFT is transferred or sold:

* Any trading fees generated **before** the transfer remain with the **previous NFT holder**
* Any trading fees generated **after** the transfer belong to the **new NFT holder**

Previously accrued fees are not reassigned or retroactively redistributed when ownership changes. Each NFT holder receives fees only for the period during which they hold the NFT.

This ensures clear ownership boundaries and predictable fee accounting for all participants.

#### Ongoing Fee Generation

Trading fees may continue to be generated for as long as participation occurs within the asset, regardless of when it was created or minted.

This model allows creators and NFT holders to remain aligned with long-term engagement while maintaining transparent and time-based ownership of fee flows.

#### Transparency and Settlement

All trading fees are calculated and distributed on-chain using protocol-defined logic. Fee flows are deterministic, verifiable, and visible to participants at all times.

No manual intervention is required for fee settlement, and ownership transitions do not interrupt fee distribution.


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