> For the complete documentation index, see [llms.txt](https://docs.teaproject.org/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.teaproject.org/_3_token/bonding-curve-tokens/bonding-curve-theta.md). # Bonding Curve Theta **Theta** is the percent of every token buy or consume event that's used to fund the development of the TApp. If **theta** is set at .2 (20%), then 1 - .20 = .8 is used to fund the sell side of the bonding curve (80%). The smaller the number for **theta**, the closer the buy and sell prices are on the bonding curve. For example, a **theta** value of .05 (5%) would mean the sell price is always at 95% of the buy price. But a small **theta** has drawbacks to the creator as they will get less of every buy and consume event. ## Theta as TApp / CML Creator Note that the TApp or CML creator receive the **theta** percentage of whatever funds enter into the bonding curve. When a user creating a TApp or CML token spends TEA for the initial funding, they'll receive **theta** % back in their wallet (e.g. if **theta** is 30% and the initial funding is quoted as 1000T, the user will receive 300T back in your wallet for a net cost of 700T. You will still need to have the entire quoted amount available in your wallet, and you'll receive the **theta** % back as part of the transaction. A large **theta** of, for example, .4 (40%) may seem like a good deal for the creator. They'll receive a large share of every bonding curve buy/consume event directly into their wallet. But a large **theta** makes it less attractive for token holders as they'll get proportionally less tokens as a dividend on buy and consume events. Additionally, the sell curve will always be below the buy price by 40%, resulting in a possible scenario where nobody wants to invest in the TApp's token. Such a large **theta** value will force investors to wait a long time to ever be profitable. ## Theta determines spread between a TApp / CML token's buy and sell price An investor buys at a TApp or CML token's buy price and sells at its sell price. An investor who buys 100T worth of a TApp (or CML) token with a theta of .2 (20%) has 80T go to fund the bonding curve and 20T going to the developer (or miner) Mathematically, the sell price is always (1 - theta) \* (buy price) anywhere along the bonding curve. --- # Agent Instructions This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com. ## Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter, and the optional `goal` query parameter: ``` GET https://docs.teaproject.org/_3_token/bonding-curve-tokens/bonding-curve-theta.md?ask=&goal= ``` `ask` is the immediate question: it should be specific, self-contained, and written in natural language. `goal` is optional and describes the broader end goal you are ultimately trying to accomplish on behalf of the user. GitBook uses it to tailor the answer towards what is most useful for that goal. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.