Fees and liquidity

Ark routes official-pool fees into rewards, buybacks, and Harbor liquidity.

Fee routing is explicit. The hook collects fees only on the official pool, the Fee Router splits them by configured routes, and downstream contracts handle each destination.

Fee Schedule

Route	Fee	Notes
Official buy	10%	Applies to normal official-pool buys.
Official sell	10%	Applies to normal official-pool sells.
Direct board buy	5%	Discounted buy-fee override for the board-with-ETH executor.
Direct lock buy	2.5%	Discounted buy-fee override for the lock-with-ETH executor.
Boarded exit	Up to 40%	Decays linearly to zero over the exit decay duration.

Fee Routes

WETH and TEST fees have different destinations. WETH fees come from official-pool hook fees. TEST fees come from early exits and buyback output.

WETH hook fees

20% to the protocol fee receiver
32% to locked rewards
32% to Buyback Logic
16% to Harbor

TEST fees and buyback output

60% to locked TEST rewards
30% to base boarded TEST rewards
10% to the dead address

flowchart LR
  Hook[ArkHook] --> FeeRouter[ArkFeeRouter]
  Boarding[ArkBoarding exit fees] --> FeeRouter
  FeeRouter --> Vault[ArkVault rewards]
  FeeRouter --> Buyback[ArkBuybackLogic]
  FeeRouter --> Harbor[ArkHarbor]
  FeeRouter --> Receiver[Protocol fee receiver]
  Buyback --> Pool[Official Pool]
  Buyback --> FeeRouter

Buybacks

Buyback Logic receives WETH budget from the Fee Router. When the hook calls maintenance and the cooldown has passed, Buyback Logic spends 1% of its current WETH balance through the official pool.

The bought TEST is not kept by the buyback contract. It is sent back through the buyback output route: 60% locked rewards, 30% base rewards, and 10% burn transfer.

Harbor

Harbor receives WETH from the Fee Router. When hook maintenance is ready, it deploys 10% of its current WETH balance as single-sided WETH liquidity below the current official-pool tick.

Harbor is a liquidity reinforcement system. It is not user custody and it does not hold individual user balances.

flowchart TB
  Spot[Current spot tick] --> Upper[Upper tick floors to spacing]
  Upper --> Lower[Lower tick is below spot]
  WETH[Harbor WETH balance] --> Band[WETH-only liquidity band]
  Band --> Pool[Official v4 pool]

The current TEST deployment uses a 4-block Harbor cooldown and deploys 10% of available Harbor WETH per ready attempt. The range is below spot so it acts as downside liquidity.

Why The Official Path Matters

TEST can be transferred and third-party markets can exist. Those paths do not automatically feed Ark rewards or Harbor. Official Ark activity is activity that passes through the official pool, Boarding, Vault, and Fee Router.