> ## Documentation Index
> Fetch the complete documentation index at: https://docs.pariprotocol.xyz/llms.txt
> Use this file to discover all available pages before exploring further.

# How Pari works

> What Pari is and what happens from the first buy to the locked pool.

## What it is

Pari is a token-launch protocol, live on Solana and built to run on more chains. The name comes from *pari passu*: on equal footing, with the same rights. PariPad is the launchpad built on it.

Every launch follows the same public rules, and everyone starts from the same point. A wallet that buys in the first seconds pays a high fee, and most of that fee goes to the holders of the token. None of it goes to Pari.

Pari has three parts:

* **Rules.** A dev picks one of three presets. Each preset sets the opening fee, the buy limits and the dev's own buy.
* **Liquidity lock.** When a token reaches the DEX, all of its liquidity is locked for good.
* **Fee sharing.** The dev receives a share of every trade for the life of the token. Sites and bots that launch through the SDK receive a share too.

Pari is built on Meteora's Dynamic Bonding Curve (DBC). After the curve, a token moves to a Meteora DAMM v2 pool.

## When to use it

Read this page first. It gives you the whole path of a token. Each step links to the page with the detail.

## Step by step

**1. The dev picks a preset**

On the site, or through the SDK. See [Launch rules and presets](https://docs.pariprotocol.xyz/protocol/presets.md).

**2. The token is created**

It uses Token-2022, and a transfer hook enforces the buy limits.

**3. The dev's launch buy is locked**

It sits in a program vault. Each preset caps its size, and the dev cannot sell it early.

**4. Trading opens on the bonding curve**

The market cap starts at about US\$ 6k. The fee starts at 99% and falls to 1%, a little lower every second. A max wallet and a per-slot buy cap apply at the start.

**5. The holder window runs**

For the preset's decay time plus 5 minutes, the whole partner share of the fees goes to the token's holders. See [Fees](https://docs.pariprotocol.xyz/protocol/fees.md).

**6. The token migrates**

It moves to a DAMM v2 pool at about US\$ 45k market cap. The hook is revoked on the buy that completes the curve.

**7. All liquidity is locked for good**

The locked positions belong to the Pari program, not to the creator. See [Liquidity lock](https://docs.pariprotocol.xyz/protocol/liquidity-lock.md).

## Numbers and limits

| | |
| - | - |
| Total supply | 1,000,000,000 tokens, 6 decimals |
| Market cap at the first trade | About US\$ 6k |
| Market cap at migration | About US\$ 45k |
| Fee at the start | 99%, falling to 1% |
| Fee on the curve | 1% per trade |
| Fee after migration | 0.5% per trade, set when the pool is created |
| Name lock | 6 hours from the launch |

## What can go wrong

Pari sets the rules of a launch. It does not make a token safe, and it does not set a token's price. Read [Risks](https://docs.pariprotocol.xyz/security/risks.md) before you buy.

## Next

> [card] [Launch a token](https://docs.pariprotocol.xyz/guides/launch-a-token.md)
>
> From connecting a wallet to a live token.

> [card] [Buy and sell](https://docs.pariprotocol.xyz/guides/buy-and-sell.md)
>
> How a trade works in the opening window and after it.


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