# DAO Protocol Fees

Clipper adds a small spread (\~10bps) to each trade. 100% of this spread goes to AdmiralDAO as protocol fees. DAO protocol fees are published by [Token Terminal](https://tokenterminal.com/terminal/projects/clipper/financial-statement) and are also publicly auditable [on-chain](https://etherscan.io/address/0xD8Cc0304de58fCE5147796606Db14500d94b5EF2?ref=blog.clipper.exchange).

### How the Spread Works 

The spread is measured by summing the positive difference between Clipper input and output on swaps, according to on-chain price oracles. This is fully verifiable on-chain, so LPs don’t need to take anyone’s word for it.

This spread generates excess returns *on top of* Clipper's rebalancing strategy and no impermanent loss benchmark ("benchmark outperformance").  This structure means **LPs only pay fees if they profit.** This is a big difference from other AMMs, which charge fees on all trades, even those that lose money for LPs. 

You can track benchmark outperformance [here](https://clipper.exchange/data/benchmark).