> For the complete documentation index, see [llms.txt](https://loadout.gitbook.io/product-docs/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://loadout.gitbook.io/product-docs/for-traders/trading.md).

# Trading Mechanics

Loadout uses two trading mechanisms depending on where a project is in its lifecycle.

### Pre-Graduation: Bonding Curve

Before a project graduates (hits 60 SOL treasury), all trading happens on a bonding curve.

#### How It Works

* Price increases as more people buy and decreases as people sell
* Liquidity is built into the curve itself — you can always buy or sell
* No need for traditional liquidity providers
* Trades settle instantly on-chain

The bonding curve is a mathematical formula that automatically adjusts price based on demand. You don’t need to understand the math — just know that buying pressure pushes the price up, selling pressure pushes it down, and there is always liquidity available.

### Post-Graduation: Meteora DLMM

Once a project reaches 60 SOL in its bonding curve, it automatically graduates into a Meteora DLMM (Dynamic Liquidity Market Maker) pool.

#### What Changes

* Deeper liquidity and lower slippage
* More efficient trading
* Same 5% fee structure continues
* Liquidity is permanently locked (no rug risk)
* Fees continue flowing to the project treasury

#### What Stays the Same

* You still hold the same tokens
* You can buy and sell at any time
* 5% trading fee (4% to project treasury, 1% to protocol)

#### Fee Breakdown

Every trade, whether on bonding curve or DLMM:

| Component        | Percentage |
| ---------------- | ---------- |
| Project Treasury | 4%         |
| Loadout Protocol | 1%         |
| **Total**        | **5%**     |

This fee applies to both buys and sells.

#### Example

You want to buy 100 SOL worth of a project token:

* **5 SOL** goes to fees (4 SOL to project, 1 SOL to protocol)
* **95 SOL** worth of tokens you receive

You want to sell tokens worth 100 SOL:

* **5 SOL** taken as fees (4 SOL to project, 1 SOL to protocol)
* **95 SOL** you receive

### Price Discovery

Price on Loadout is determined purely by the market.

* No presale prices
* No VC discounts
* The first trade sets the starting price
* The market can reprice instantly based on news, updates, or sentiment

When a team ships an update, the market can reprice immediately. When a project goes quiet, price reflects that too. This is the point — let the market express conviction continuously.

### Slippage

On bonding curves, slippage increases with trade size. Large buys will move the price more than small buys.

On Meteora DLMM, slippage depends on liquidity depth. Post-graduation pools generally have better liquidity than pre-graduation curves.

If you're making a large trade, consider breaking it into smaller chunks to reduce price impact.

### Solana Advantages

* Trades confirm in seconds
* Network fees are extremely low (fractions of a cent)
* Supported by all major Solana wallets (Phantom, Solflare, Backpack, etc.)