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megsdevs committed Nov 22, 2023
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---
date: 2023-09-06 00:00:00
title: Understanding Valorem Protocol Fees
title: Understanding Valorem Fees
description: Dive deep into Valorem's fee structure, breaking down the maker-taker fee model for trade relays, and the associated costs for clearing and settlement. Use real-world examples to simplify the process of calculating fees when writing, trading, and exercising options on the Valorem platform.
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Embarking on the Valorem platform journey? Ensure you're armed with insights on its fee structure. This guide
elucidates Valorem's unique maker-taker fee model for trade relays and offers a clear understanding of clearing and
Embarking on the Valorem platform journey? Ensure you're armed with insights on its fee structure. This guide
walks through Valorem's unique maker-taker fee model for trade relays and offers a clear understanding of clearing and
settlement costs. With illustrative examples centered around real trades and options, we'll simplify the arithmetic
behind each transaction fee, empowering you to navigate the Valorem ecosystem efficiently and confidently. Let's
decode and demystify Valorem's protocol fees together.
behind each transaction fee, empowering you to navigate the Valorem ecosystem efficiently and confidently.

Valorem has a maker-taker fee model for relaying trades, meaning actions which provide liquidity may have different fees assessed than actions that take liquidity. Likewise for clearing and settlement — different fees may be assessed for option writers and option holders.

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