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

# Fees & Taxes

The tax is the protocol's **fuel**: it funds the HOOD purchases distributed to holders.

## Tax structure

<table><thead><tr><th width="198">Parameter</th><th>Default</th><th>Hard cap (coded)</th></tr></thead><tbody><tr><td>Buy tax (<code>buyTax</code>)</td><td>5%</td><td>≤ 5% (can only be <strong>lowered</strong>)</td></tr><tr><td>Sell tax (<code>sellTax</code>)</td><td>5%</td><td>≤ 5% under normal conditions</td></tr><tr><td>Wallet-to-wallet transfer</td><td><strong>0%</strong></td><td>Always 0</td></tr></tbody></table>

{% hint style="success" %}
**Sending $HOODSTR to a friend costs no tax.** Only buys and sells through a pool are taxed.
{% endhint %}

## Addresses excluded from rewards

Some addresses must not accrue rewards, or distribution would become circular or wasteful. Excluded:

* the Uniswap $HOODSTR/ETH pool (liquidity is not a "holder");
* the HoodStrategy contract itself;
* the treasury and operations wallet;
* the burn address (`0x…dead`).

The **"eligible supply"** used in reward math = total supply − balances of excluded addresses.


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