> For the complete documentation index, see [llms.txt](https://arcticdefi.gitbook.io/arctic-defi-whitepaper/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://arcticdefi.gitbook.io/arctic-defi-whitepaper/arctic-defi-revolutionizing-cross-subnet-defi-infrastructure/the-arctic-solution.md).

# The ARCTIC Solution

## How Transactions Work

Understanding how transactions flow through the ARCTIC system is crucial. The following diagram illustrates the process:

{% @mermaid/diagram content="flowchart TB
subgraph TokenValue\[ARCTIC Token Value]
direction TB

```
    Fees[Trading Fees 0.3%] --> Distribution
    
    subgraph Distribution[Fee Distribution]
        LP[0.15% Liquidity Providers]
        Treasury[0.1% Treasury]
        Insurance[0.05% Insurance Fund]
    end
    
    subgraph Benefits[Holder Benefits]
        Staking[Staking Rewards\n5-12% Base APR]
        Governance[Governance Rights]
        Bonuses[Bonus Multipliers]
    end
    
    Distribution --> Benefits
end

style TokenValue fill:#2B1818,stroke:#F8F0F0,color:#F8F0F0
style Fees fill:#8B0000,stroke:#F8F0F0,color:#F8F0F0,stroke-width:2px
style Distribution fill:#D8D0D0,stroke:#2B1818,color:#2B1818
style Benefits fill:#E8E0E0,stroke:#2B1818,color:#2B1818
style LP fill:#F8F0F0,stroke:#2B1818,color:#2B1818
style Treasury fill:#F8F0F0,stroke:#2B1818,color:#2B1818
style Insurance fill:#F8F0F0,stroke:#2B1818,color:#2B1818
style Staking fill:#F8F0F0,stroke:#2B1818,color:#2B1818
style Governance fill:#F8F0F0,stroke:#2B1818,color:#2B1818
style Bonuses fill:#F8F0F0,stroke:#2B1818,color:#2B1818" %}
```