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

# Tax And Reward Tokens

> How tax and reward tokens behave in the Vault and in wallets.

Most tokens work the same everywhere on Sonar. Transfer tax tokens don’t work in the Vault, and reward tokens don’t earn their rewards while held there. Wallets handle both as normal.

| Token type | Vault | Wallet | What happens |
| - | - | - | - |
| Sell tax | Yes | Yes | Auto slippage adjusts for the tax. |
| Transfer tax | No | Yes | The tax is taken on every Vault move, which breaks execution. Wallets execute directly, with no transfer. |
| Reward or reflection | Yes, without rewards | Yes | Sonar doesn’t honor rewards on Vault balances. Wallets receive them as normal. |

## Sell Tax Tokens

Some tokens take a percentage every time someone sells. These work on Sonar. Auto slippage adjusts for the tax, so strategies and swaps normally run without changes.

## Transfer Tax Tokens

These tokens take a percentage on every transfer. They don’t work in the Vault.

In the Vault, a token is transferred several times: when you fund and again before each sell. Each transfer is taxed. Sonar sizes every execution from your strategy settings, so when the executor receives less than expected, the transaction will fail.

> [!WARNING]
>
> **Use A Wallet For These Tokens**\
> Don’t fund the Vault with transfer tax tokens. Hold them in an imported or generated wallet.

## Reward And Reflection Tokens

Some tokens reward holders for holding. These work in the Vault like any other asset, but Sonar doesn’t honor the rewards on Vault balances.

In an imported or generated wallet, rewards go directly to that wallet and you receive them as normal.

> [!TIP]
>
> **Want To Keep Earning?**\
> Hold reward tokens in a wallet to keep receiving rewards.

## Not Sure About A Token?

[Contact support](https://t.me/SonarTradeBot) and we’ll check it with you before you fund.

## Related

> [card] [Fund Your Account](https://docs.sonar.trade/start/fund.md)
>
> Add tokens to your Vault, a wallet or a group.

> [card] [Fees And Limits](https://docs.sonar.trade/help/fees.md)
>
> What each action costs, and the smallest trade per chain.


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