> For the complete documentation index, see [llms.txt](https://cosmik-finance.gitbook.io/cosmik-finance-documentation-v2.1/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://cosmik-finance.gitbook.io/cosmik-finance-documentation-v2.1/principal-tax.md).

# Principal Tax

Taxes are never an enjoyable feature as a retail investor. But in order to provide an asset that is able to grow in quantity while you hold, a feature that mitigates monetary position loss during downward price action, the issue of cascading inflation is introduced. Therefore, to address the resulting issue of inflation, taxes of various fashions and distributions have been introduced to try and find a way to rebalance circulating supply growth into the areas to stabilize price.<br>

| **Buy**      | **14%** |
| ------------ | ------- |
| Automatic LP | 4%      |
| The Vault    | 5%      |
| Cosmik Trust | 2.5%    |
| Firepit      | 2.5%    |

| **Sell**     | **16%** |
| ------------ | ------- |
| Automatic LP | 4%      |
| The Vault    | 5%      |
| Cosmik Trust | 4.5%    |
| Firepit      | 2.5%    |