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

# Utility of $YLZ Trading Fees

**Placement and Utility of $YLZ Trading Fees:**  

<mark style="color:purple;">**Buy Trading Fees 12%:**</mark>

3.0% - YALE\
4.0% - YCF\
2.5% - Wizard's Chest\
2.5% - Lava Lake

<mark style="color:purple;">**Sell Trading Fees 18%:**</mark>

4.0% - YALE\
6.0% - YCF\
4.5% - Wizard's Chest\
3.5% - Lava Lake

<mark style="color:purple;">**Explaining the Placement:**</mark>&#x20;

* **YALE** - Our Smart Liquidity Pool will benefit from trading fees that to backing the liquidity of the BNB/YLZ pair on PancakeSwap ensuring an ever-increasing collateral value of $YLZ and helping further expansion into more decentralized and centralized exchanges. &#x20;
* **YCF** - Trading fees are stored in the Yieldzard Coverage Fund which helps sustain and back the staking rewards provided by the positive rebase.
* **Wizard's Chest** - Trading fees go directly to the chest which supports the YCF, provides a marketing budget for Yieldzard and funds new product development.
* **Lava Lake** - A total ok 6% of all buy and sell transactions of $YLZ are burnt in the Lava Lake. The more that is traded, the more get put into the fire causing the fire pit to grow in size, larger and larger through self-fulfilling auto-compounding which in return acts to reduce the circulating supply of $YLZ and keeping the Yieldzard protocol stable and circulating supply more valuable .


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