# Fees

**Pocket will charge a 1% fee on each transaction which will not reduce our total value locked (TVL)**

* Re-balances&#x20;
* Deposits&#x20;
* User performance fees (TBD)

**Pocket will charge a 1% fee on each transaction which does reduce our TVL.**

* Any type of withdrawal

## Fee Distribution

Pocket shares fees with creators on copied portfolios.

* A user creates a portfolio from scratch -> All creation fees from scratch go to Pocket
* A user copies another users portfolio -> 50% copy fees go to Pocket 50% copy fees go to the creator of the profile
* A profile creator rebalances their portfolio -> a user who copies that creator accepts the proposed rebalance -> 50% of rebalance fees go to Pocket 50% of rebalance fees go to the creator of the profile

If a user is creating anything from scratch for the first time, 100% of the creation fees go to Pocket.

*As Pocket grows and our TVL increases, fees will be subject to change based on protocol performance and number of active users.*

*<mark style="background-color:yellow;">Fee sharing is directly correlated to platform performance/revenue. As the platform's revenue grows, fees shared with holders will also be subject to growth. Similarly, if the platform's revenue diminishes, fees for holders could be subject to decrease.</mark>*
