Zero Fee Model

Definition ∞ A Zero Fee Model describes a business approach where a service or product is offered without direct transaction fees to the user. In the digital asset space, this typically applies to trading platforms or payment services that generate revenue through other means, such as premium subscriptions, interest on customer funds, or market making activities. It aims to attract users through cost savings.
Context ∞ The viability and sustainability of the Zero Fee Model in the digital asset industry are subjects of ongoing debate and market scrutiny. News often reports on platforms adopting or adjusting such models, with discussions focusing on the underlying revenue streams and potential hidden costs or incentives. While appealing to users, the long-term economic foundations of these models remain a critical consideration for market participants and regulators.