# Reward & Fee ## Reward s\[Token]/sc\[Token] tokens accrue Token rewards, generated from delegation rewards of underlying ORAI delegations. ### s\[Token] Holders can send a request to the s\[Token] reward contract, which prompts the transfer of accrued rewards to their account. ### sc\[Token] Rewards earned from staking will be automatically re-staked and accrue to the sc\[Token] to earn compound rewards, thus increasing its value against Token. For example, 1 sc\[Token] can redeem 1 Token at the start. However, when staking rewards accumulate to sc\[Token], it will steadily gain in value. If the Token staking APY is 30%, one year after genesis 1 sc\[Token] is worth 1.3 Token. ## Fee The following direct fees are collected: * **Peg recovery fee:** Only applies to s\[Token] token. Slashing events decrease the s\[Token] exchange rate, lowering the calculated value of a s\[Token] token. The protocol applies a fee of **0.5%**( configurable) to s\[Token] mints and burns whenever the exchange rate is below **1**, targeting a gradual recovery to a one-to-one peg. * **Maintenance fee:** Only applies to sc\[Token] token. This **2%** fee is charged on the automatic compounding of rewards. * **Orchai operating costs fee.** All accrued rewards are taxed at a configurable rate. The fee is set at **0%** but can be increased later. --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://docs.orchai.io/orchai-liquid-staking/reward-and-fee.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.