# 5. Business Model

<figure><img src="https://718049331-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FkOmpZnhLCrdaptEDr3uA%2Fuploads%2FwigYzgDwvplrwbYLJRRO%2FBusiness%20Model.png?alt=media&#x26;token=f17e453f-823e-4836-84b5-d84537213353" alt=""><figcaption><p>Figure 5.<em><strong>1: Trivex Business Model</strong></em></p></figcaption></figure>

## 5.1 Revenue Streams

Trivex employs a diversified revenue model to ensure sustainability and scalability within the Web3 trading ecosystem. Our primary revenue sources include:

### 5.1.1 Trading Fees:

Users incur fees when executing trades on the platform. Trivex adopts a maker/taker fee structure with competitive rates that incentivize liquidity provision while ensuring cost-effectiveness for traders.&#x20;

### 5.1.2 Strategy Usage Fees:

This dividend percentage is determined by several data about the strategy creator: number of usage, past win rate, and past profitability. Trivex dividend starts at 10% and increases in size and percentage based on the performance of the strategy. The maximum is 20%. At the same time, the strategy developer can set the dividend percentage personally. Trivex will earn trading fees and 10% of the strategy creators’ profit during this process.

### 5.1.3 Stake:&#x20;

Trivex’s business model relies on liquidity pools in USDC. These pools work in tandem to ensure seamless trading execution and efficient liquidity management.

When users deposit USDC into the platform, 70% of the USDC is converted into USDC on the corresponding platform. This USDC serves as a liquidity reserve for trading for the unmatched orders. The remaining 30% remains in USDC, functioning as a risk reserve and to accommodate user withdrawals.

Since conversion takes can take some and cause delays, Trivex employs a dual-pool strategy:

* The USDC pool allows for pre-emptive conversions to anticipate trading volume demands.
* The USDC pool provides direct liquidity for trading, ensuring that capital is readily available without delays from conversion.

Of the total liquidity available within Trivex, 70% of USDC is allocated for active trading, while the remaining 30% serves as a risk buffer. To incentivize liquidity providers, both pools offer an Annual Percentage Yield (APY) in a certain range, depending on liquidity occupation and dynamically adjusted by the Automated Market Balancer (AMB) system.

## 5.2 Cost Structure

Our exchange partner is going to be the biggest cost player in the deal. In addition, we will be using conversion service due to the need to bridge the USDC into the corresponding chain and platform for trading. Depending on the amount of conversion, the fee will range from 0.1% to 0.2% to 0.3%. We are introducing dual liquidity pools so the return on stake provider APY is also our cost.
