Revenue Sharing

Revenue Sharing is an aspect of the HollaEx® system that is often inquired about by both current and potential future Operators. To clarify how it works, we’ve created this guide to provide clear explanations and examples, to eliminate any confusion on revenue sharing, and to show exactly how to generate profit from your exchange. (For a short version see HollaEx® docs here).

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What is Revenue Sharing?

In short, revenue sharing refers to a percentage (determined by your exchange’s plan), that is applied to specific fees that are incurred on HollaEx® exchanges. This percentage is then shared with HollaEx®.

The two most common misconceptions about revenue sharing are:

• Is revenue sharing applied to all profits generated by my exchange and business?
• Will I need to pay the revenue sharing on top of my plan’s payment?

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Where Does Revenue Sharing Apply?

The key takeaway about revenue sharing is that it only applies in very select instances, not to your exchange or business as a whole. 

The following list shows some of the methods of generating profit through exchange ownership. The items marked with a star, are the only ones where revenue sharing would apply:

• Trading fees from Orderbook trades⭐
• Trading fees from OTC trades ⭐
• Spreads from OTC
  • Crypto-to-crypto
  • Fiat-to-crypto (and vice-versa)
• Withdrawal and Deposit Fees ⭐

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Running a financial platform as you would imagine has the possibility to create countless ways to create new revenue streams. As long as your platform is running at a high levels and your users have deposit funds on your platform, there will always be a way to generate income.

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As an additional note, where trading fees are chosen by the Operator to be 0% (available on Boost and Enterprise plans), the revenue sharing amount will like wise be zero.

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Key Point

→ Revenue sharing applies only to certain income-generating avenues of the exchange and is not applied exchange-wide.

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Alternative ways to generate revenue

• Listing environment for your token, assisting asset value
• Listing fees from other token owners
  • Market making on behalf of owners
• Staking penalties
• Other more novel means:
  • Events & competitions
  • Physical locations
  • Premium & VIP services
  • Referrals & Affiliates
  • Lending and borrowing
  • Arbitrage trading
  • etc.

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Key Point

→ There are many ways to earn revenue from an exchange. Many of these alternative revenue streams aren't shared with the network.

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How is Revenue Sharing Applied?

Some Operators have questioned whether the revenue sharing total is calculated and then invoiced separately from the exchange’s plan. Fortunately, revenue sharing operates without any need for action from the Operator, with the system handling everything behind the scenes.

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How Fees Are Gathered and Paid to Operators

On HollaEx® Exchanges, the process of collecting trading fees and transferring them to the Operator is straightforward.

As trades and withdrawals occur, fees are applied based on the operator's chosen settings. These ‘slices’ of each transaction are the fees that are accumulated and stored until the operator chooses to settle them. This can occur at any time the operator wishes, with no limit on how regularly settlement can occur.

At this point, the operator selects which account (usually the admin or a dedicated earnings wallet) on the exchange will receive these accumulated fees. The gathered assets are then transferred to the chosen account, minus the applicable revenue-sharing percentage.

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Key Point

→ Revenue sharing is fully automated. Operators don’t need to manually manage it, set aside funds, or deal with separate billing for revenue-sharing purposes.

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Why is Revenue Shared?

The primary purpose of revenue sharing is to support the maintenance of the HollaEx® Trading engine while also aligning our interests with the success of our operators’ exchanges. By sharing in your success, we are strongly incentivized to help your exchange grow and thrive, going beyond the role of a standard service provider.

Revenue sharing also helps support our developers as they continuously refine and expand the features available to operators. This allows us to offer new features at no extra cost, without expecting additional payments from our existing users.

In the past three years, several hugely significant features have been made available to Operators:

• OTC Broker (April 2022)
  • Dynamic Pricing Addition (July 2023)
• Apps section to assist in plugin development (October 2022)
• Network Swap, to access liquidity for lower volume assets (July 2023)
• Staking (November 2023)
• Advanced Referral System (June 2024)
• P2P Trading (June 2024)

These are just a few of the most significant additions and don’t include the many smaller features that enhance functionality, and improve convenience, or the numerous fixes implemented to ensure all exchanges remain stable, secure, and reliable. For a full list of ongoing HollaEx® updates and releases, please visit the following page.

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Looking to start? Try HollaEx® open-source crypto exchange here.

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