# Fees

## Stargate Transaction Fees/Rebates

In V1, Stargate charged a flat 6 bps fee for all transactions via V1 pools. In V2, with the help of the AI Planning Module (AIPM) Stargate V2 enables dynamic fees. 

**How the Transaction Fee/Rebate is calculated:**

This refers to the difference between the input by the user on the source chain and the received amount on the destination chain. 

**Why rebates exist**: 

As mentioned, the AIPM is in charge of ensuring liquidity is evenly distributed among all Stargate pools based on their utilisation. When a specific pathway has seen high levels of demand and the pool's liquidity depletes, a rebate is offered to help rebalance the liquidity in the system.

**Fee allocation breakdown:**

* **veSTG Holders:** 1/6 of all fees generated
* **Protocol treasury:** 5/6 of all fees generated 

## Stargate Gas Fees

The Gas cost paid in the native gas token by the user entails payment for 2 things. 

1. LayerZero's execution fee 
2. Fee to the DVN for verifying the message between LayerZero endpoints