# Trading

7007 Launch uses a Bonding Curve to determine the buy and sell prices.

When creating a trading pair for an AI NFT collection, the creator must specify the bonding curve to be used.

Once a trading pair is created, the selected bonding curve cannot be changed.

**Bonding Curve Formula**

```jsx
spotPrice(x) = 0.00015294 * e^((ln(10/0.13) * supply)/7007)
```

**\[Graph of Curve]**

<figure><img src="https://1461395220-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FfBqjdUqc3KEFA63HJ4XF%2Fuploads%2FDbopPsNQ2Gx48ywOsEpd%2F2.png?alt=media&#x26;token=e5ea0fa7-047a-420e-9aa7-d93c2af68eb4" alt=""><figcaption></figcaption></figure>

In the 7007 Bonding Curve, the **spotPrice** (denominated in $Ora) is calculated based on the current **supply** in the trading pair, determining the price to buy or sell one **AI NFT**. If a user purchases or sells multiple **AI NFTs** in a single transaction, the price will update according to the supply on the bonding curve.

For example: Suppose there are currently 1,000 **AI NFTs** remaining in the trading pair, and the supply stands at the 6,007th. If the user wants to buy 5, the total price will be a cumulative value calculated as follows:

* Price of the first: spotPrice(6007)
* Price of the second: spotPrice(6008)
* Price of the third: spotPrice(6009)
* Price of the fourth: spotPrice(6010)
* Price of the fifth: spotPrice(6011)

The total payment will be the sum of these five different prices. This dynamic pricing mechanism ensures that the price of each **AI NFTs** accurately reflects the real-time market supply during the transaction.

#### Fee Structure

Transactions on the 7007 Launch platform incur three types of fees.

* a fixed 1% trading fee.
* the AI model inference fee, which is only charged upon purchasing an "Unrevealed AI NFTs"

This fee is applied to each "Unrevealed Inference assets" bought. For detailed inference fees, please refer to [\[#Revealing Mechanism\]](https://7007.gitbook.io/7007-protocol/how-it-works/revealing).

Currently, 7007 Launch does not apply royalties when creating or trading **AI NFTs**.

#### Selection and Bulk Purchase Modes

7007 Launch offers two trading modes: "Selection Mode" and "Bulk Purchase Mode."

**Selection Mode**

Users can choose specific **AI NFTs** to buy, but these must be "Revealed",  "Unrevealed" are only available on a first-come, first-served basis, and are purchased sequentially by token ID through "Bulk Purchase Mode."

**Bulk Purchase Mode**

Users only need to enter the desired quantity they wish to buy, and the 7007 Launch contract will automatically complete the purchase for that quantity.

#### Transaction Rules

In "Selection Mode," if an **AI NFTs** chosen by the user has already been sold, the purchase for will fail, but other selected will remain unaffected.

In "Bulk Purchase Mode," the 7007 Launch contract will make the best effort to fulfill the specified quantity, unless there are insufficient amount in the pool or the total purchase amount exceeds the user's limit.
