# Fee Model

A Protocol Reserve will be built over time by applying two types of fees:

* A Borrowing Fee, $$F^{Borrow}$$, of 0.1%, applied when a new loan is contracted as a fixed percentage of the Loan Amount 
* An Interest Fee, $$F^{Interest}$$, of 10%, applied on the total interest collected from Borrowers

We will soon publish our Tokenomics Principles that will describe in detail how this reserve will be used.