Fees

The protocol can charge the following fees. Yield, earnings and APYs displayed on the front-end take into account activated fees.

Summary

Fee Type	Amount	Notes
Reserve factor for interest payments	15% *	Percentage of interests paid which goes towards the protocol
Liquidation Penalty	2.24%	On open debt of Accounts, according to:
* Liquidation Initiation	0.12%
* Liquidation Termination	0.12%
* Liquidation Penalty	2%	Equaly split between the protocol and liquidity providers
Origination Fee	0%	Fee on new debt taken
Front-end Swap Fee	0%	Fee on swaps executed through the front-end
Front-end Position Fee	0%	Success fee on positions created and burned through the front-end
Yield Success Fee (for (st)AAA holders)	2.5%	Fee on yield generated through the protocol
Yield Success Fee (for others)	5%	Fee on yield generated through the protocol
Auto-Compounding	<1%	On compounded yield (not principal)
Rebalancer (for (st)AAA holders)	<0.025% **	On amount swapped
Rebalancer (for others)	<0.05% **	On amount swapped

* This is not the interest rate itself, but the cut on interest payments. * * Rebalancing may incur other costs such as DEX swap fees and IL.

Lending

• A fee on interest payments, currently set to 15%.

• A share of the liquidation penalty, currently evenly split between the protocol treasury and the liquidity providers.

Front-end

• A fee on swaps through the front end, currently set to 0%.

• A success fee on positions created and burned through the front end, currently set to 0%.

• A success fee on yield generated through the protocol. This fee is set at 2.5% of the claimed yield for (st)AAA holders and 5% for others.

Asset Managers

Depending on the asset manager, the fees can vary. For more information, see Asset Managers.

Reduced fees for (st)AAA holders

The fees for (st)AAA holders are reduced according to the following logic:

$$\text{If } \sum(\text{stAAA balance} + \text{AAA balance}) \geq 7,000 \rightarrow \text{fees} = \text{fees} \times 0.5$$