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.