> For the complete documentation index, see [llms.txt](https://academy.horizonprotocol.com/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://academy.horizonprotocol.com/english/horizon-protocol/introduction/business-model.md).

# Business Model

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All successful projects need to have a business model where fees are generated to become sustainable for the long term. Another term for this is "Real Yields", where the project's fee generation is from something other than inflation.

Horizon Protocol is designed in a way where the initial inflation via tokenomics will provide a runway for the project to grow. Once mature, the project will rely on fees generated via using the protocol instead of token inflation.

All fees collected by Horizon Protocol are distributed between HZN token holders who have staked in Horizon Genesis.

Fees generated consist of:

* Spot Exchange Fees
* Futures Exchange Fees
* Interests via zAsset Loans and Shorts
* Wrap/Unwrap Fees for Token Wrappers

### Spot Exchange Fees

A percentage of each trade on Horizon Exchange generates fees that go to the project's stakers. 

Note that fees differ between zAssets because these fees are set by Chainlink, the oracle that Horizon Protocol uses for the Exchange.

### Futures Exchange Fees

***Coming Soon***

A percentage of each trade on the Horizon Futures Exchange generates fees that go to the project's stakers.

### Interests via zAsset Loans and Shorts

***Coming Soon***

Horizon Protocol will feature zAsset loans and zAsset shorts in the future. These features in Horizon Protocol will provide additional revenue in the form of interest.

All zAsset loans will include interest that needs to be paid to Horizon Protocol. This includes collateralized shorts, which work similarly to a loan.

### Wrap/Unwrap Fees for Token Wrappers

***Coming Soon***

Horizon Protocol is building towards allowing for additional methods of establishing collateral in the protocol. Currently, the main form of collateral is zUSD, which is minted via Horizon Genesis, but in the future, Horizon Protocol will allow for the wrapping of other tokens into zAssets.

The action of wrapping and unwrapping token wrappers will include a small fee, which will be revenue-generating for the protocol's stakers.

<figure><img src="/files/hLl4TKTvqsed8PAQoTyU" alt=""><figcaption></figcaption></figure>


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