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

# 🏷️ Trade Fees

## **Transaction Fees**

Every buy or sell transaction made through Fred Bot incurs a **1% fee** in $VIRTUAL. To optimize transactions and reduce unnecessary charges, these fees are **accumulated** in your account until they exceed **30 $VIRTUAL**. Once the threshold is reached, an **automatic deduction** is processed.

### 🔥 Burn to Reduce Fees

Burning **$FRED** permanently reduces your trading fees.

* **Base Fee:** 1% per buy or sell transaction.
* **Burn Effect:** For every **1,000,000 $FRED** you burn, your fee decreases by **0.01%** (1% of the base fee).

#### How Burn?

To reduce your fees, simply **send $FRED from your trading wallet** to the official **dead address** `0x000000000000000000000000000000000000dEaD`.\
Fred Bot automatically detects the burn, links it to your wallet, and updates your fee rate instantly.

#### Fee Reduction Examples

| $FRED Burned | Fee Discount | Final Fee |
| ------------ | ------------ | --------- |
| 0            | 0%           | **1.00%** |
| 1,000,000    | 1%           | **0.99%** |
| 5,000,000    | 5%           | **0.95%** |
| 10,000,000   | 10%          | **0.90%** |
| 100,000,000  | 100%         | **0.00%** |

## **Track Your Fees**

You can monitor and manage any unpaid fees directly from the **/agent** menu, ensuring transparency and full control over your trading activities.


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