> For the complete documentation index, see [llms.txt](https://beratlas-organization.gitbook.io/semper-ascendit/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://beratlas-organization.gitbook.io/semper-ascendit/overview/minting.md).

# Minting

## **Minting $BATLAS**

* **Mechanism:**\
  Users can mint $BATLAS by depositing $BERA into the protocol’s smart contract.
* **Fee:**\
  A **2.5% fee** is applied to each minting transaction. These fees are added to the protocol, increasing the $BERA backing per $BATLAS.

<figure><img src="/files/bAvNFGWqfFPz7hCXim5R" alt=""><figcaption></figcaption></figure>

***

## **Redeeming $BATLAS**

* The simplest way to redeem your $BATLAS for $BERA is by "selling" it back to the contract via the **‘Trade’ tab** in the dApp. This transaction incurs the same **2.5% fee** as minting, burns the $BATLAS, and sends the underlying $BERA to the user. The fees collected are distributed across the contract, LP incentives, and the team at the same rates as minting.
* Alternatively, $BATLAS can be redeemed by taking a **loan** against your position and instantly defaulting. This returns the underlying $BERA to the user—**minus the collateral premium and interest**—and burns the $BATLAS in the process.

***

## **Minting Example**

Suppose there are **100 $BATLAS** tokens in existence, backed by **100 $BERA** tokens in the contract. This means the price of **1 $BATLAS = 1 $BERA**.

If a user pays 100 $BERA, the user gets **97.5 $BATLAS** due to the **2.5% minting fee**.

* **Fee Distribution:**
  * **70% of the fee (1.75 $BERA)** is added to the protocol’s backing, increasing the reserve.
  * **30% of the fee (0.75 $BERA)** is allocated to LP incentives and the team.

After minting, there are now **197.5 $BATLAS** tokens backed by **199.25 $BERA**.\
The new price per $BATLAS is calculated as:\
**199.25 $BERA / 197.5 $BATLAS = 1.008860759367 $BERA per $BATLAS**

As a result, the value of every $BATLAS token has increased!


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