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

# Fee schedule

Ethosis takes small, visible fees at the moments where value changes hands. Nothing is hidden inside the rate as a spread, and no token emissions subsidise the rates lenders offer.

| Fee                       | Initial rate                  | Borne by                                 | Collected                                 |
| ------------------------- | ----------------------------- | ---------------------------------------- | ----------------------------------------- |
| Origination               | 0.25% of principal            | Borrower                                 | Taken out of the principal at origination |
| Interest share            | 10% of interest paid          | Lender, netted from the payout           | On repayment or rollover                  |
| Liquidation penalty share | 2 of the 3 penalty points     | Protocol and lenders (the keeper gets 1) | When the auction settles                  |
| Refinance                 | 0.10% of principal            | Borrower                                 | When a rollover auction clears            |
| Idle-capital yield share  | 5% of vault yield (scheduled) | Lender                                   | On withdrawal from the vault              |

Every rate above is a PolicyController parameter and can change only through the timelock, with a published rationale. A change never reaches back into an active loan's origination or refinance fee, and the interest share on a loan is the rate that applied when the loan was originated.

## Destination

Fees accumulate in the `Treasury` contract, where they pay for audits, the bug bounty and operations. Once the governance module takes over parameter control, it decides how the treasury is allocated.

## What the numbers look like at scale

Assume 50M USDG outstanding on average, an average term of 30 days and an average APR of 8%:

* Origination: 50M × 12 turns a year × 0.25%, about 1.5M USDG a year.
* Interest share: 50M × 8% × 10%, about 0.4M USDG a year.

Together that is roughly 1.9M USDG a year, before any liquidation income. See [Business model](/resources/business-model.md).


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