# 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                  |          | On open debt of Accounts, according to:                           |
| - Liquidation Initiation             | 0.12%    | Paid to the keeper initiating the liquidation                     |
| - Liquidation Termination            | 0.12%    | Paid to the keeper terminating the liquidation                    |
| - Liquidation Penalty                | 2%       | Equally 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                    | 7.5%     | Fee on yield generated through the protocol                       |
| Auto-Rebalancer                      | 0%\*\*   | Yield success fee on rebalancing                                  |
| Auto-Compounder                      | 0%\*\*\* | Yield success fee on compounding                                  |

\* *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.*\
\* \* \* *Compounding may incur other costs such as DEX swap fees.*

## 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 to 7.5%.

## Asset Managers

Depending on the asset manager, the fees and usage limits can vary. For more information, see [Asset Managers](https://docs.arcadia.finance/protocol/asset-managers).