# Fees and Rewards

{% hint style="info" %}
Fees on [V1 here](https://stream.ajirapay.finance) paused until further notice.
{% endhint %}

{% hint style="info" %}
We do not charge any protocol fees on [V2 here](https://app.ajirapay.finance)
{% endhint %}

In V1 of the linear token streaming and token vesting solutions of the Ajira Pay Finance platform, the architecture is such that when creating a stream or a token vesting schedule, there is a 0.5% fee charged on the amount of the asset that is deposited.

This fee attracts an equal amount of $AJP token in rewards, as an example, Bob wants to stream to Alice 500 USDt over some specified duration, the fee is calculated as follows:

$$
protocol fee = deposit \* percentage / PRECISION
$$

Where: 

`deposit = amount of asset in this case USDt,` 

`percentage = a configurable value between 0 to 120 currently at 50 (0.5 %)`

`PRECISION = a constant value set to 10000 to help in decimal calculations`

With this we have:

```
fee = 500 * 50 / 10000 = 2.5  USDt
```

Therefore, the total stream amount in USDt that will reach Alice is as follows:

$$
amount  = deposit - fee
$$

```
500 - 2.5 = 497.5 USDt
```

The fee is channeled to the protocol treasury to help the team in the following areas:

* Platform maintenance and improvements including payments for RPCs.
* Marketing.
* Paying our devs and team.
* Community programs
* Crypto Taxation for local jurisdictions where Ajira Pay Finance is registered

From the above calculation, upon creating a successful stream, Bob will secure 2.5 reward tokens in $AJP of which, 10 % of this is sent to him instantly while the rest is subjected to a linear stream for a maximum duration of 6 months to control $AJP inflation.

The same applies for the case of token vesting.

{% hint style="info" %}
The percentage of fee charged is meant to cushion the protocol and support further growth activities and platform improvements.
{% endhint %}

{% hint style="info" %}
The total linear stream duration for the rewards is subject to change as shall be deemed fit by the community with relation to $AJP circulating supply after launch.
{% endhint %}