# Fees

All revenue generated from our multi-level tax system and fee schedules is automatically reallocated to support the HedgeFi Capital Fund, which in turn is used in regulated investment strategies to generate rewards for all holders. Buyback mechanics fueled by interest garnered, sustains a positive market pressure on the HPAY token system. Taxes are significantly reduced when interacting with HedgePay contracts to incentivize the use of in-house mechanics. Sixty-six percent of all taxes are used to increase the valuation of liquidity for the HedgeFi Capital Fund. Twenty percent of taxes is used to improve accessibility, encourage adoption, engage in mutual partnerships, and fund HedgeDrops (merchandise giveaways). Fourteen percent of taxes are used to fund the implementation of new services and streams of revenue to supplement the HedgeFi Fund and decouple its valuation from consistent transactional volume.

{% hint style="info" %}
**Our tax mechanism is designed to remove traditional negative market pressures on the price of the HPAY token. We will never be selling any HPAY tokens obtained from transaction taxing. HedgePay's main taxing revenue will come from mechanics where taxes are taken directly in the form of a stable asset or crypto asset that is not directly bound in any way to the HPAY token financial environment.**
{% endhint %}

## Transaction Fees

Transferring HPAY tokens to any address that is not essential to the HPAY ecosystems implies an 18% transfer tax. This incentives direct use within our ecosystem and acts as a buffer to any third parties attempting to exploit HedgePay’s financial mechanics.

## Reward Fees

Every user is entitled to one free reward claim each month. Early claims start at a 30% initial tax, which will be reduced by 1% every day. A 2% performance fee is also deducted from the total daily generated profits. This performance fee is used to improve the capital of the HedgeFi Fund, creating a positive feedback loop in its indefinite increase in valuation.


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