# Fees

Two types of fees will be charged on the Nemo Protocol, both of which will be distributed to NEMO token stakers. Details on the distribution will be coming soon.

## PT Swap Fees

Similar to other AMM-based DeFi projects, Nemo will have different fees for different pools. What makes Nemo's fee structure more reasonable is that the fees decrease as the maturity date approaches. Since shorter maturity times mean lower yields, Nemo's fees will also decrease accordingly. The specific fees can be viewed in the Swap section of the app.

## YT Swap Fees

**In Nemo's AMM, purchasing YT is executed as a flash swap (where the fee is typically multiple times higher than a standard PT swap). For example:**

Suppose you use **1 USDC** to buy **10 YT sUSDC**. The process works as follows:

1. **Borrow 9 USDC** from the Nemo Pool.
2. Combine it with your **1 USDC** to mint **10 PT + 10 YT**.
3. Sell the **10 PT** back into the pool.
4. Keep the **10 YT** as the output.

Thus, in this example, **the swap fee for YT equals the fee incurred when selling the 10 PT back to the pool.**

## YT yield Fees

Nemo collects 5% of all YT yields as a protocol fee.