# Revenue Model

### How Spree Generates Revenue

Spree collects transaction fees on SP operations. There is no SaaS license, no implementation fee, and no minimum commitment. Revenue scales with usage.

### Fee Schedule

| Operation                | Fee   | Collected By   |
| ------------------------ | ----- | -------------- |
| Mint SP from stablecoins | 0%    | --             |
| Convert SP to Branded SP | 0%    | --             |
| Convert Branded SP to SP | 0.25% | PointsFactory  |
| Distribute pSP           | 0.20% | PendingSPVault |
| Finalize pSP (settle)    | 0.20% | PendingSPVault |
| Redeem SP to stablecoins | 0.50% | SpreeFactory   |

Minting is free to encourage adoption. Spree charges fees on value extraction (redemption, Branded SP conversion) and on reward lifecycle events (pSP distribution and settlement).

### Fee Flow

#### SP Mint and Redeem Fees

The SpreeFactory applies a per-asset mint rate and redeem rate. The default mint rate is 100% (no fee). The default redeem rate is 99.25% (0.75% fee retained as vault shares).

Fees accumulate in the vault and the fee receiver withdraws them on demand.

#### SpreeVault4626 Fees

The rewards vault has separate `mintFeeBps` and `redeemFeeBps` (basis points, capped at 10% each). These fees are collected on deposit and withdrawal, transferred to the configured `feeReceiver`.

#### Branded SP Conversion Fee

The PointsFactory retains the conversion fee when Branded SP is burned and underlying SP is withdrawn. The PointsFactory deducts the fee from the SP amount released to the user.

### Revenue Drivers

Revenue increases when:

* More SP is minted and redeemed (0.50% on each redemption)
* More Branded SP is created and converted (0.25% per conversion)
* More pSP campaigns run (0.20% on distribution, 0.20% on settlement)
* Rewards vault TVL grows (mint and redeem fees on deposits/withdrawals)

Spree earns more when brands and protocols use the system more.


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