> For the complete documentation index, see [llms.txt](https://docs.squadswap.com/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.squadswap.com/platform/fee-manager.md).

# Fee Manager

In SquadSwap V2 and V3, all protocol fees are collected and managed by the Fee Manager contract. These fees are generated from swap transactions and are distributed as follows:

* **90%** of the total fees go directly to liquidity providers (LPs) as rewards for supplying liquidity.
* **10%** of the total fees are sent to the Fee Manager contract for further allocation.

A portion of these accumulated fees, specifically **10% of the total protocol fees**, will be governed by the SquadSwap governance. This ensures that the community has a say in how these funds are utilized to support the growth and sustainability of the protocol.