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Protocol flat fee

Every Hearth fill applies a 1% flat fee (HEARTH_FEE_BPS = 100) on trade notional, paid by the taker, split 70/30:
The 70% share is debited from the pool reserves into the HEAT-denominated cdHearthFeeAccumulator and minted into the CD yield vault (CD_APY_POOL) at the epoch boundary. The 30% maker rebate goes to the auction maker (or stays with LPs when the pool is the counterparty). The consumed XFG side of conversions is burned 50/50 (Eternal Flame / SWF).

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What LPs should expect

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What CD holders get from Hearth

The Hearth flat fee accrues toward CD yield plumbing (cdHearthFeeAccumulator → epoch mint → CD_APY_POOL). Holding HEAT CDs participates in that stream together with the CD share of atomic swap fees. The LP income is LP-only; CD holders do not share it.

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Wrong numbers to ignore

Older docs and strategy notes sometimes say:
  • “0.3% to LPs” as the Hearth fee — incorrect for live HEARTH_FEE_BPS
  • “LPs earn the Hearth flat fee” — incorrect; the 1% flat fee goes to CD yield, LPs earn pool P&L
  • “LPs earn a spread reward |fill.price − P_clear| × amount” — outdated; that belonged to the retired in-band matcher
  • “80% of swap fees to CDs” — outdated; atomic swap split is 69/11/20
Always prefer src/CryptoNoteConfig.h and the consensus fee split code.