# Management Fees

Pink Finance charges NFT wrapping and unwrapping fees (x% of wNFT value) during minting and redemption. Fee managers are responsible for recording and calculating wrapping and unwrapping fees for all NFT collections. This contract can be replaced by Pink Finance DAO, allowing for various fee calculation models. For example, to mitigate price manipulation of wNFTs and reduce the risk of impermanent losses for liquidity providers, a fee calculation model is designed as follows:

PriceFluctuation = (OraclePrice - LastPrice) / LastPrice \* ImpactFactor

WrapFee = BaseFee \* (1 - PriceFluctuation)

UnwrapFee = BaseFee \* (1 + PriceFluctuation)

The Price Fluctuation range is capped at a maximum of 1 and a minimum of -1, with OraclePrice provided by an oracle, LastPrice representing the actual price after the last trade in a specific wNFT pool, and ImpactFactor and BaseFee set by Pink Finance DAO for each NFT collection to adjust management fees according to pricing fluctuations. When wNFT prices rise or fall sharply, fee changes have a more pronounced effect in curbing these trends. The maximum wrap and unwrap fee cap is 5%, adjustable by Pink Finance DAO.
