# Fees

In the [USDN protocol](/ultimate-synthetic-delta-neutral/the-usdn-protocol/glossary.md#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](/ultimate-synthetic-delta-neutral/the-usdn-protocol/glossary.md#the-usdn-token) holders, and protect the protocol from market risks.

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


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