> ## Documentation Index
> Fetch the complete documentation index at: https://docs.kek.pro/llms.txt
> Use this file to discover all available pages before exploring further.

> ## Agent Instructions
> Treat Solana and Robinhood Chain as separate protocol paths.
> Write for people using the KEK.PRO app.
> Treat displayed fees, limits, and availability as environment-specific unless labeled as protocol constants.

# Fee rights

> Understand who receives one market's capped fee-rights allocation and why ownership changes.

A fee-rights position determines who receives one KEK.PRO market's configured
fee-rights allocation. The position applies to that market only.

Fee rights are one destination within the protocol-fee flow. They are not a
claim on every fee a trader pays. They also do not add a separate fee to a
trade.

<figure className="kek-figure" data-mark="OWN" aria-labelledby="fee-right-position-title">
  <div className="kek-figure__header">
    <span id="fee-right-position-title">Fee-rights position / value path</span>
    <small>One market · one active position · capped payout</small>
  </div>

  <div className="kek-figure__body">
    <div className="kek-flow kek-flow--five">
      <div className="kek-flow__node is-live"><span>01 / Fallback</span><strong>Creator recipient</strong><small>Receives the allocation while no active position exists.</small></div>
      <div className="kek-flow__node"><span>02 / Compete</span><strong>Token-lock auction</strong><small>Eligible holders bid with the launched market's token.</small></div>
      <div className="kek-flow__node"><span>03 / Own</span><strong>Active position</strong><small>The winner receives eligible fees from that market.</small></div>
      <div className="kek-flow__node"><span>04 / Transfer</span><strong>Remaining cap moves</strong><small>A buyer acquires the existing payout history, not a reset.</small></div>
      <div className="kek-flow__node"><span>05 / Exhaust</span><strong>Fallback resumes</strong><small>The round can close after the payout cap reaches zero.</small></div>
    </div>
  </div>

  <figcaption className="kek-figure__caption"><strong>Fee rights are not LP ownership.</strong> They do not guarantee volume, payout speed, or return.</figcaption>
</figure>

## What the position includes

| Detail       | Meaning                                               |
| ------------ | ----------------------------------------------------- |
| Fee source   | The market's configured fee-rights allocation         |
| Owner payout | Eligible fees, limited by the remaining payout cap    |
| Scope        | One launched token market                             |
| Acquisition  | Win its token-lock auction or buy its active position |
| Transfer     | The remaining cap moves with the position             |

The position does not include control of the token contract, ownership of the
liquidity position, guaranteed trading volume, or a guaranteed payout.

## Who receives the allocation

The configured creator recipient is the fallback. That recipient receives the
fee-rights allocation before the first auction and whenever no active position
exists.

```text theme={"theme":{"light":"github-light","dark":"github-dark"}}
No active position  → configured creator recipient
Active position     → current owner, up to the remaining payout cap
Cap exhausted       → configured creator recipient until the next position
```

If one fee collection would exceed the remaining cap, the owner receives only
the amount left under the cap. The rest goes to the configured creator
recipient.

## How a round works

<Steps>
  <Step title="The creator phase runs">
    The configured creator recipient receives the fee-rights allocation. A
    grace period prevents an auction from starting immediately after launch.
  </Step>

  <Step title="Holders bid with the launched token">
    Each bidder locks tokens from that market. The bid must satisfy the active
    tier's eligibility rules.
  </Step>

  <Step title="The highest eligible token lock wins">
    The winner's tokens move into a permanent lock. Losing bidders can reclaim
    their tokens after settlement.
  </Step>

  <Step title="The owner receives the fee-rights allocation">
    Each eligible fee collection pays the active owner until the payout cap is
    consumed. Low volume or low fee generation can make payout slow or
    incomplete.
  </Step>

  <Step title="The position ends">
    The owner stops receiving fees when the cap reaches zero. The position can
    then close and a new auction round can start.
  </Step>
</Steps>

## Understand the payout cap

The payout cap limits how much an auction winner can receive. The protocol
derives it from the winning token lock's value at settlement, a configured
multiplier, and the active tier ceiling.

For example, if a position has a `50`-unit cap and has received `18` units, its
remaining cap is `32` units. If the owner sells it, the buyer can receive at
most those remaining `32` units. A sale does not reset the cap.

The cap is a maximum. It is not a promised return, an APR, or a minimum payout.

## Reselling a position

An owner can list an active position at a fixed price. Listing pauses
fee-rights collection. This prevents the seller from collecting fees after a
buyer has priced the position but before the sale executes.

The buyer receives the same position with its existing payout history and
remaining cap. The seller pays the configured secondary-market fee from the
sale proceeds.

## Permanent lock is not a burn

Winning tokens cannot return to circulation. Their on-chain supply does not
decrease unless a separate burn executes.

Auction timing, bid valuation, payout assets, payout caps, and resale
availability are chain-specific. Open the fee-rights guide in your active
network tab before you bid.