# Fee Structure & Distribution

**Algebra Integral** \
As Beam features Algebra Integral concentrated liquidity pools, the fee tier on each pool adjusts dynamically according to current volume running through the pool for maximum capital efficiency and fee generation for the protocol. There are many factors to how the fee tier is determined, but the simplified logic is as follows:

* During periods of low activity, the fee tier continues to drop towards it's minimum level. This is to make the pool more attractive to aggregators, undercutting competitors and increasing pool volume - as volume at a lower fee tier is better than no volume at all.
  * For stable pairs the minimum fee tier is 0.01% 
  * For volatile pairs the minimum fee tier is 0.05%
* As trading activity within the pool increases, the fee tier also rises. This is to increase the profitability for liquidity providers in times of high volatility while still providing traders with a competitive fee rate. 
  * There is no maximum fee tier for any pool<br>

**Revenue Model on ve(3,3) Pools**\
If both tokens of a liquidity pool's pair are whitelisted by the team to be staked in a reward pool and receive $BEAM emissions rewards, the liquidity providers of that pair will not receive trading fees, but instead receive $BEAM emissions. You can read more about this mechanism in the [ve(3,3) Ecosystem](/protocol-overview/beams-ve-3-3-ecosystem.md) section of this document.

100% of all trading fees on ve(3,3) liquidity pools are sent to its respective reward pool.&#x20;

Through this mechanism, the system provides veBEAM holders with the power to incentivize trading fees instead of total liquidity. The destination of $BEAM emissions is in the hands of the lockers.


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