# Fees Structure

The existence of commissions on the platform is driven by two key features:

* The creation, purchase, and sale of indexes occurs on the blockchain and is facilitated by a large number of transactions that require the payment of transaction fees.
* There is a need to ensure fair compensation for index creators and liquidity providers.

Thus, the collection of commissions is aimed not only at maintaining the functioning and ensuring the continued development of the platform but also at rewarding its key participants - the community.

Below are all existing commissions, as well as their brief descriptions and possible sizes:

* <mark style="color:blue;">**Entry Fee:**</mark> Commission charged by the platform from index buyers when buying an index. The fee is set by the index creator and can be 0.5-5.0% of the position size.
* <mark style="color:blue;">**Exit Fee:**</mark> Commission charged by the platform from index holders when selling an index. The fee is set by the index creator and can be 0.5-5.0% of the position size.
* <mark style="color:blue;">**Management Fee:**</mark> The platform charges the management fee to index holders monthly at a rate of 0.0-5.0% per annum of the position size or 0.0-20.0% of profit. Commission is paid upon exiting the index, at the same time as the exit fee.
* <mark style="color:blue;">**Transaction Fee:**</mark> Commission for the operation of buying and selling the underlying assets of the index. The commission is charged for performing transactions on the blockchain. The amount of the fee depends on the actual transaction prices at the time of the transaction.

Users can reduce the size of the commission using the INDX platform token. More detailed information is presented in the [Incentivization Program](https://cryptoindex-1.gitbook.io/cryptoindex-whitepaper/more-details-about-indx-utility/incentivization-program) section.


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