# Core Concept

HYPEX is an independent Governance Token issued by Supreme Finance. HYPEX will be used for all Supreme Finance policy decisions, DeFi Pool and NFT Staking purposes.

A small liquidity provider fee is taken out of each trade and added to the reserves. While the ETH-ERC20 reserve ratio is constantly shifting, fees make sure that the total combined reserve size increases with every trade. This functions as a payout to liquidity providers that is collected when they burn their pool tokens to withdraw their portion of total reserves. Guaranteed arbitrage opportunities from price fluctuations should push a steady flow of transactions through the system and increase the amount of fee revenue generated.

![Trading Relationship](https://2984125270-files.gitbook.io/~/files/v0/b/gitbook-legacy-files/o/assets%2F-MWwnWlWhUe_8r37oXjE%2F-MXBLBMe8daACqxEiEc0%2F-MXBqACpsIJwcfidfmcW%2Fimage.png?alt=media\&token=a983607f-6e20-4e05-9bac-4629036ae31d)

With Uniswap, 0.3% of all trading fees in any pool are proportionately distributed to the pool’s liquidity providers.

With Sushiswap, 0.25% go directly to the active liquidity providers, while the remaining 0.05% get converted back to $SUSHI and distributed to the $SUSHI holders. 

With Supreme, 0.25% goes directly to the active LPs of the pool, and 0.05% gets split with a 7:3 split amongst $HYPE holders and original $HYPEX holders.

![Structure of Trading fee](https://2984125270-files.gitbook.io/~/files/v0/b/gitbook-legacy-files/o/assets%2F-MWwnWlWhUe_8r37oXjE%2F-MXBLBMe8daACqxEiEc0%2F-MXBqckN18EI4WPHQqbg%2Fimage.png?alt=media\&token=88ab45a5-943d-43d0-b722-15d8bd62efc2)