> For the complete documentation index, see [llms.txt](https://rifts.gitbook.io/rifts-docs/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://rifts.gitbook.io/rifts-docs/tokenomics-and-profits/tokenomics.md).

# Tokenomics

The protocol allows users to wrap any SPL token into "rift tokens" (e.g., rSOL, rToken) that maintain backing ratios through automated rebalancing mechanisms.

* Wrap any SPL token into rift tokens with 0.3% fees
* Unwrap rift tokens back to underlying assets
* Dynamic backing ratios that increase over time through burns
* Real time arbitrage and oracle-triggered rebalancing for price stability

**Tokenomics**

* Wrap fees: 0.3% of fees burn underlying tokens (configurable per rift), kept by Rifts Treasury.
* Token fees: 1% fees charged on Rifts. This is to prevent competition on arbitrage & make an income off potential arbitrage bots which are not run by the Rifts team.
* Treasury: 0.25% meteora fees, out of which 86.6% can be claimed by the deployer of the rift (user).
* Arbitrage profits: 50% to the user, 50% to the Rifts Treasury. On the long-term, arbitrage will automatically run on every created Rift. Special partners can capture up to 80% of the profits.<br>

  <figure><img src="/files/k6Vhfj1C6PZxv6Zzkoju" alt=""><figcaption></figcaption></figure>