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

# Agent Fees

> How agents charge for assignment and dispute resolution.

## Agent Fee Types

Agents can charge two types of fees:

<CardGroup cols={2}>
  <Card title="Assignment Fee" icon="tag">
    Charged when the agent is assigned to an escrow at creation.
  </Card>

  <Card title="Dispute Fee" icon="gavel">
    Charged only if the agent resolves a dispute.
  </Card>
</CardGroup>

***

## Assignment Fee

Some agents charge an **upfront fee** when selected for an escrow:

* **When charged:** At escrow creation
* **Paid by:** Buyer (on top of escrow amount + protocol fee)
* **Typical range:** 0-2%
* **Purpose:** Reserves the agent's capacity

<Note>
  Many agents charge 0% assignment fee. Check before selecting!
</Note>

***

## Dispute Fee

When an agent **resolves a dispute**, they earn a dispute fee:

* **When charged:** Only when `agentResolve()` is called
* **Deducted from:** The escrow funds (before split)
* **Typical range:** 1-10%
* **Capped at:** 10% maximum (enforced by DAO)

### How Dispute Fees Work

```
Escrow Amount: $1,000
Agent Dispute Fee: 5%

Agent Decides: 60% buyer / 40% seller

Calculation:
1. Agent fee: $1,000 × 5% = $50
2. Remaining: $1,000 - $50 = $950
3. Buyer: $950 × 60% = $570
4. Seller: $950 × 40% = $380

Distribution:
- Agent: $50
- Buyer: $570
- Seller: $380
- Total: $1,000 ✓
```

***

## No Agent Fee If...

<AccordionGroup>
  <Accordion title="Buyer releases directly" icon="hand-holding-dollar">
    If the buyer releases funds without a dispute, no agent fee is charged.
  </Accordion>

  <Accordion title="Seller refunds" icon="undo">
    Seller-initiated refunds don't involve the agent.
  </Accordion>

  <Accordion title="Mutual split" icon="divide">
    If parties agree on a split without agent intervention, no fee is charged.
  </Accordion>

  <Accordion title="Agent times out" icon="clock">
    If the agent doesn't respond within 7 days and you claim timeout, no fee is charged.
  </Accordion>
</AccordionGroup>

***

## Fee Bounds

The DAO sets minimum and maximum fee limits:

| Parameter   | Value          | Purpose                                         |
| ----------- | -------------- | ----------------------------------------------- |
| **Min Fee** | 0.1% (10 bps)  | Prevents "free" agents with no skin in the game |
| **Max Fee** | 10% (1000 bps) | Protects users from excessive charges           |

Agents must set their fees within these bounds when registering.

***

## Choosing an Agent by Fees

When selecting an agent, consider:

<CardGroup cols={2}>
  <Card title="Low Fees" icon="down">
    **Pros:** Cheaper disputes

    **Cons:** May indicate less experience
  </Card>

  <Card title="Higher Fees" icon="up">
    **Pros:** May signal quality/expertise

    **Cons:** More expensive if disputes occur
  </Card>
</CardGroup>

<Tip>
  The best strategy: choose based on reputation first, fees second. A skilled agent at 5% beats an inexperienced one at 1%.
</Tip>

***

## Viewing Agent Fees

When creating an escrow, you can see each agent's fees:

1. Click on an agent's profile
2. View their **Assignment Fee** and **Dispute Fee**
3. Consider their reputation alongside fees
4. Select the best fit for your needs

***

## FAQs

<AccordionGroup>
  <Accordion title="Can agents change their fees?">
    Agents can update their fees anytime, but changes only affect new escrows. Your escrow uses the fees at creation time.
  </Accordion>

  <Accordion title="What if the agent decides 100% for one party?">
    The agent fee is still deducted first. So "100% to buyer" means the buyer gets (100% - agent fee).
  </Accordion>

  <Accordion title="Are agent fees in addition to protocol fees?">
    Yes. Protocol fee (1%) is paid at creation. Agent fees (if any) are paid from the escrowed funds.
  </Accordion>
</AccordionGroup>
