---
title: "Codex Fee Mechanism"
---
### `vac:tke::codex:cdx-fees`
---

```mermaid
%%{ 
  init: { 
    'theme': 'base', 
    'themeVariables': { 
      'primaryColor': '#BB2528', 
      'primaryTextColor': '#fff', 
      'primaryBorderColor': '#7C0000', 
      'lineColor': '#F8B229', 
      'secondaryColor': '#006100', 
      'tertiaryColor': '#fff' 
    } 
  } 
}%%
gantt
	dateFormat YYYY-MM-DD
	section Codex
		Fees :, 2024-02-01, 2024-07-01
```

- status: 95%
- CC: Frederico

### Description
Understand the mechanisms to implement protocol fees, e.g. burn-and-mint equilibrium model;

### Justification
Understand the security of the system. As part of the Codex Technical Milestone #5 ("Tokenomics").

### Deliverables
- Specific parts of three chapters of the Codex Litepaper (Use Cases, Contract Lifecycle, and CDX Tokenomics) (the milestones [cdx](cdx.md), [cdx-insurance](cdx-insurance.md), and [cdx-lender](cdx-lender.md) cover the remaining parts of these chapters).
- One section of the Codex Whitepaper (CDX Tokenomics)

### Tracking Metrics
Completion of the respective sections in the Codex Litepaper and Whitepaper.

### Work breakdown
Definition of value accrual, capture and incentive mechanisms of the Codex protocol.

### Perceived Risks
Technical and legal constraints.