> ## Documentation Index
> Fetch the complete documentation index at: https://help.spring.net/llms.txt
> Use this file to discover all available pages before exploring further.

# How are fees calculated on contributions?

> Learn how fees deducted during investor contributions work on the Spring platform.

<Note>
  This article only applies to VCs and Investment syndicates, as projects do not charge an additional fee during a raise.
</Note>

## Fee Calculation Model

Spring uses a **deductive fee structure** for deal participation. Rather than adding fees on top of investments, they are subtracted from the investor's total contribution amount.

The formula is: **Invested amount - Fee = Allocation**

This allocation determines token distribution to investors.

## Example Walkthrough

With a 10% fee and \$1 token price:

* Investor contributes: **\$1,000**
* Fee calculation: 10% × $1,000 = **$100\*\*
* Allocation: $1,000 - $100 = **\$900**
* Tokens received: $900 ÷ $1 = **900 tokens**

The defining factor for the number of tokens an investor receives is the allocation.

## Fee Distribution

Fundraising fees and contributions are directed to the same **Fundraising Wallet** configured within each deal. Spring provides detailed tracking showing:

* Total amount raised toward SAFT
* Total fees charged

This enables managers to determine how much to send to the project per SAFT requirements.