> ## 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.

# Robinhood Chain fee rights

> Understand the token-lock auction, capped V3-fee payout, permanent winning lock, and repeat rounds.

Robinhood Chain fee rights determine who receives one market's configured
fee-rights allocation from collected V3 position fees.

When no active position exists, the allocation goes to the configured creator
recipient. An active owner receives both pool assets until the position's
paired-asset-denominated payout cap is consumed.

<figure className="kek-figure kek-figure--robinhood" data-mark="CAP" aria-labelledby="robinhood-rights-cycle-title">
  <div className="kek-figure__header">
    <span id="robinhood-rights-cycle-title">Fee-rights round / V3 payout cycle</span>
    <small>Token lock · TWAP value · paired-asset cap</small>
  </div>

  <div className="kek-figure__body">
    <div className="kek-flow kek-flow--five">
      <div className="kek-flow__node is-live"><span>01 / Ready</span><strong>Creator fallback</strong><small>The configured recipient receives fees between positions.</small></div>
      <div className="kek-flow__node"><span>02 / Auction</span><strong>Lock launched token</strong><small>Token atoms rank bids; TWAP establishes value.</small></div>
      <div className="kek-flow__node"><span>03 / Settle</span><strong>Permanent winner lock</strong><small>Losing bidders can reclaim after the round.</small></div>
      <div className="kek-flow__node"><span>04 / Payout</span><strong>Collect both assets</strong><small>Combined TWAP value consumes the remaining cap.</small></div>
      <div className="kek-flow__node"><span>05 / Repeat</span><strong>Close exhausted state</strong><small>The allocation returns to the fallback before a new round.</small></div>
    </div>
  </div>

  <figcaption className="kek-figure__caption"><strong>Cap is not yield.</strong> Market activity and eligible collected fees determine the payout pace.</figcaption>
</figure>

See [protocol fees on Robinhood Chain](/robinhood/fees) for the V3 fee layers
and reviewed allocation.

## How an auction round works

1. After the creator grace period, anyone can start an auction for a market
   without an active position.
2. You bid by locking the launched token. Each bid must meet the active tier's
   minimum value.
3. The highest eligible token amount leads. A TWAP determines eligibility and
   payout value.
4. The round settles after its timer ends or the leading bid reaches the
   early-settlement threshold.
5. The winner's tokens remain permanently locked. Losing bidders can reclaim
   their tokens.
6. The winner receives the fee-rights allocation until the payout cap is
   consumed.
7. The exhausted position can close. The allocation returns to the configured
   creator recipient, and a new auction can start.

## Reviewed defaults

| Rule                 |      Default |
| -------------------- | -----------: |
| Creator grace period |     `7 days` |
| Auction duration     |    `3 hours` |
| Bid valuation TWAP   | `30 minutes` |
| Payout multiplier    |         `5×` |
| Secondary-sale fee   |      `0.50%` |

Auction tiers and minimum bid values are configurable.

## Auction

Bids use the launched token. Ranking follows the number of token atoms locked;
the TWAP quote determines eligibility and payout value.

* The highest eligible bid wins.
* Winning tokens remain permanently locked.
* Losing bidders can reclaim after settlement.
* An under-minimum winner at expiry cancels the round.

The payout cap is:

```text theme={"theme":{"light":"github-light","dark":"github-dark"}}
min(live winning-bid value, tier early-settlement value) × 5
```

The cap is a ceiling, not guaranteed revenue.

## Fee flow and resale

Each collection can contain both pool assets. The protocol values the
launched-token amount through the position's snapshotted TWAP and adds the
paired-token amount. This combined value consumes the remaining payout cap.

The active owner receives only the portion that fits under the cap. Any excess
routes to the configured creator recipient.

An owner can list the position at an exact native price. While listed, the
position cannot receive fees. A buyer gets the remaining cap and pays the
reviewed `0.50%` marketplace fee to the buyback-and-burn reserve.

The public [Fee Market](/product/fee-rights-market) is Robinhood Chain only.