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FlowState charges the seller because the seller is the side bringing inventory into the liquidity layer and receiving the primary execution benefit. The default seller fee is 1% of executed volume, with fee configuration available at the asset level. The fee is deducted only from inventory that fills. Unsold inventory can be withdrawn without an execution fee.

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Why compare total execution cost, not fee tiers

A 1% seller fee is high compared with many AMM fee tiers. That comparison is incomplete when the position is large relative to available market depth. For an AMM route, the seller’s economic outcome can include both the protocol or LP fee and the price impact created by moving through the available curve. For a C1 fill, the seller pays the applicable C1 fee but the C1 pool itself does not add bonding-curve price impact. The relevant comparison is therefore the complete executable outcome, not the headline fee in isolation.

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Illustrative $200K comparison

The example below uses simplified curve-impact assumptions to show why a higher explicit fee can still produce a better seller outcome when AMM depth is thin. It is illustrative, not a promise of execution quality on any specific token or route.
Horizontal value bars compare illustrative net proceeds: 187.4K after 6.3% curve impact and fee, 191.4K after 4.3%, and $198K after the default 1% C1 seller fee

Illustrative retained proceeds from a $200K starting position

Actual outcomes depend on available depth, route construction, market state, fees, gas, oracle conditions, execution timing and fill rate. C1 is not expected to be the best route for every trade. It is designed for the segment where thin liquidity makes curve impact material.

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Seller and buyer treatment

The inventory provider receives the approved quote asset used for each fill, net of the applicable seller fee. Because one C1 Pool can accept multiple approved quote assets, proceeds may accrue in more than one asset. C1 does not charge the buyer the seller-side protocol fee. The buyer still remains responsible for gas and any costs imposed elsewhere in the execution path.

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High-level fee allocation

Seller fee allocation: 60 percent distribution and commercial participation, 40 percent buyback mechanism

Public high-level seller-fee allocation

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Distribution and commercial participation

60% of the seller fee is allocated to distribution and commercial participation. This is strategically important to the FlowState model. Sell-side inventory becomes more useful when it can be reached from more execution surfaces, while the distribution network becomes more useful when FlowState carries inventory that existing venues struggle to source efficiently. The distribution allocation can support parties that contribute:
  • routing and execution
  • integrations and technical distribution
  • inventory origination
  • platform distribution
  • business development and introductions
  • other agreed commercial value
Individual allocations are determined through commercial agreements and can differ by partner or integration. FlowState does not publish a fixed split inside the 60% allocation.

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Buyback mechanism

40% of the seller fee is allocated to the protocol’s buyback mechanism. The protocol-level buyback is funded by this fee allocation but remains separate from individual buyer settlement and from any optional quote-side liquidity configured within a C1 Pool. Buyer settlement does not depend on an inline secondary-market buyback transaction. The detailed implementation and operational controls belong in the technical documentation rather than the commercial whitepaper.

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Reading the applicable fee

The default seller fee is 1%, but asset-level configuration means inventory providers and integrators should confirm the fee applicable to the relevant deployment and token. The decision to use C1 should consider the whole execution objective: available market depth, trade size, required speed, fees, market conditions and the fact that full-position completion is progressive rather than guaranteed at deposit time.