# Fees

Allo collects a fee on each pool that is created through the protocol. There are
two fee mechanisms, a base fee and a percentage fee.

## Base Fee

The base fee is a fixed amount that is charged when a pool is created. The base
fee is paid in ETH and should be included in the `msg.value` when calling
either method for creating a pool.

The base fee amount can be checked by calling `getBaseFee()`. At time of
writing, the base fee is set to 0 Eth. 

## Percentage Fee

The percentage fee is determined by the amount of funding in the pool and is
charged when the pool is funded. The fee will be deducted from the funding
amount. 

For example, if `fundPool()` is called with 1 Eth as the amount, 0.025 Eth will
be deducted from the amount as the fee. The remaining 0.975 Eth will be used to
fund the pool. The same applies for pools that use any ERC20 token.

The percentage fee amount can be checked by calling `getFeePercentage()`. At
time of writing the percentage fee is 2.5%. 

### Fee Governance

Fee amounts are determined through the [Gitcoin DAO governance
process](https://gov.gitcoin.co/t/gitcoin-dao-governance-process-v3/10358).