Revenue Sharing
Revenue sharing is an aspect of the HollaEx that is often misunderstood. This quick guide aims to clear up what revenue sharing is, where it applies, and how it functions
What is Revenue Sharing?
Revenue Sharing refers to a percentage (determined by the exchange plan), that is applied to specific fees incurred on HollaEx exchanges. This percentage is then shared with HollaEx.
The two most common misconceptions about revenue sharing are:
Is revenue sharing applied to all profits generated by my exchange and business?
Will I need to pay the revenue sharing on top of my plan’s payment?
Where Does Revenue Sharing Apply?
The key takeaway about revenue sharing is that it only applies in select instances, and not to your exchange or business as a whole.
Revenue sharing only applies to fees generated in the following places:
Trading Fees
From Orderbook Trades
From OTC Trades
Withdrawal and Trading Fees
As an additional note, where the Operator has set any of these fees to be zero, then revenue sharing will likewise be zero. There is no minimum amount of revenue sharing applied.
This means that income created from methods such as spreads, listing fees, staking penalties, and all others, are completely untouched by revenue sharing.
Key Point: Revenue Sharing applies only to select aspects of the exchange, and is not applied either exchange-wide or business-wide.
How is Revenue Sharing Applied?
Revenue sharing operates without any need for action from the Operator as the system handling everything behind the scenes.
As trades and withdrawals occur and fees are accumulated by the system, ready to settled by the Operator, the appropriate percentage of each fee is split off automatically and the settled fees will have already had revenue sharing applied where appropriate.
Key Point: Revenue sharing is a fully automated system integrated to the HollaEx system. Operators do not have to perform any action in order to manage it.
Why is Revenue Shared?
Revenue sharing supports the maintenance of the HollaEx Trading engine while also aligning our interests with the success of our operators’ exchanges.
Revenue sharing also helps support the HollaEx developers to refine and expand the features available to operators allowing new features to be offered at no extra cost. For a full list of ongoing HollaEx updates and releases, please visit the following page.
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