# Minting, Redeeming, Transfers and Fees

## Fee Mechanics

The distribution of fees will be handled by a PaymentSplitter contract that will release all the accrued fees to the different recipients. The distribution function is public and can be called by anyone at anytime. The only incurred cost would be the gas fee to execute. This allows for the flexibility of modifying where fees go in the future to ensure the best strategies are implemented.

<mark style="color:blue;">**A key note:**</mark> A portion of the fees from KimboTrainer will be forwarded to the Kimbo College contract also increasing the $Kimbo backing of gKimbo.

## Minting

gKimbo is minted in the following automated process using the UI:

1. $Kimbo is deposited into the Kimbo College contract, which then mints gKimbo into your wallet.
2. 3% Deposit fee is taken and distributed as below.
   * 1.5% is used for liquidity provision and/or other real-yield opportunities
   * 0.75% is sent back to the Kimbo College (increasing Kimbo:gKimbo ratio)
   * 0.375% Dev Fee
   * 0.375% Goes to Official Kimbo Treasury Multisig Wallet&#x20;

## Redeeming

$Kimbo is withdrawn from the Kimbo College contract. i.e. gKimbo is swapped back for $Kimbo via the UI:

1. gKimbo is burned from the user's wallet and an amount of $Kimbo equivalent to the exchange rate of gKimbo burned to Kimbo in the vault is returned to their wallet. This will either be what they originally deposited (minus fees) or potentially more if $Kimbo was added to the contract via external systems.
2. 1% Withdraw fee is taken and distributed as below.
   * 0.25% is used for liquidity provision and/or other real-yield opportunities
   * 0.25% is sent back to the Kimbo College (increasing Kimbo:gKimbo ratio)
   * 0.25% Dev Fee
   * 0.25% Goes to Official Kimbo Treasury Multisig Wallet

## Buys, Sells, and Transfers

gKimbo is transferred from/to a wallet, a contract, or swapped on a dex:

1. gKimbo transfers to the recipient as any normal ERC20 token would
2. 0.5% fee is taken and distributed as below.
   1. 0.25% of the gKimbo is burned. Increasing all remaining shares value
   2. 0.25% is taken as a dev fee

<mark style="color:blue;">**Note:**</mark> Fee structure is subject to change at any time. Usage of fees are subject to change at any time. However, there are hard limits coded into the contract so that it cannot exceed a specific range.


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