> For the complete documentation index, see [llms.txt](https://docs.securd.org/documentation/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.securd.org/documentation/securd-models/fee-model.md).

# 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.