# Fees

In the [USDN protocol](https://docs.smardex.io/ultimate-synthetic-delta-neutral/glossary#usdn-protocol), several fees are applied to ensure the system’s proper functioning, stability, and security. Fees are a key component of the protocol, as they incentivize active user participation, reward [USDN token](https://docs.smardex.io/ultimate-synthetic-delta-neutral/glossary#the-usdn-token) holders, and protect the protocol from market risks.

The following sections provide all the essential information about these fees.