# Breakdown of taxes

Every trade executed on SolForgeAI incurs a small transaction fee, which is distributed across different functions within the platform's ecosystem. Here’s how the taxes are allocated:

## 🔹 Breakdown of Trading Fees & Taxes on SolForgeAI

## 1️⃣ **Vault** – 50% of Trading Fees

A significant portion of the trading fees (50%) goes directly to the Vault. This helps to strengthen the platform’s reserves and support long-term growth and sustainability.\
Example: If a trade generates a $10 fee, $5 goes to the Vault.

✅ Strengthens platform reserves\
✅ Supports ecosystem stability\
✅ Long-term growth focus

## 2️⃣ **Buyback and Burns** – 30% of Trading Fees

✅ Supports token scarcity\
✅ Potentially increases token value\
✅ Enhances deflationary model

## 3️⃣ **Marketing** – 20% of Trading Fees<br>

To ensure sustainable growth and attract more users, 20% of the fees are dedicated to marketing efforts. This includes:\
🔹 Promotions & partnerships\
🔹 Community growth campaigns\
🔹 Advertising & influencer collaborations\
Example: If a trade generates a $10 fee, $2 goes towards marketing efforts.

✅ Drive new user acquisition\
✅ Expand platform reach\
✅ Fuel community engagement

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### **📊 Summary of Fee Distribution**

| **Category**  | **% of Trading Fees** |
| ------------- | --------------------- |
| **Vault**     | **50%**               |
| **BBB**       | 30%                   |
| **Marketing** | 20%                   |

***

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