> 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/resources/business-model.md).

# Revenue model

Ethosis charges small, visible fees at the points where it adds value: when a loan originates, when interest is paid, when collateral is liquidated and when a loan is refinanced. There is a protocol token, $ETHOSIS on Robinhood Chain, but the business does not rest on it. Nothing is paid out as emissions and no spread is buried in the rate.

## Fee lines

| Fee                              | Initial rate              | Who pays                                                     |
| -------------------------------- | ------------------------- | ------------------------------------------------------------ |
| Origination                      | 0.25% of principal        | Borrower                                                     |
| Share of interest                | 10% of interest paid      | Lender, netted from the payout                               |
| Share of liquidation penalty     | 2 of the 3 penalty points | Protocol and lenders; the remaining point goes to the keeper |
| Refinance                        | 0.10% of principal        | Borrower                                                     |
| Idle vault yield share (roadmap) | 5% of yield               | Lender                                                       |

The complete schedule is in [Fees](/protocol/fees.md).

## $ETHOSIS

The token is deployed at `0xe33ab021662e23f745be8e5b237babe8c7ad626c` on Robinhood Chain. Supply is fixed at 1 billion and there is no mint function. It exists alongside the fee model, not in place of it: the fee lines above remain the protocol's income, and none of them are settled in token emissions or subsidised by them.

## What the numbers look like at scale

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

| Line                              | Working                | Per year (USDG) |
| --------------------------------- | ---------------------- | --------------- |
| Origination                       | 50M × 12 turns × 0.25% | \~1.5M          |
| Share of interest                 | 50M × 8% × 10%         | \~0.4M          |
| **Total, excluding liquidations** |                        | **\~1.9M**      |

Somewhere between 30M and 40M USDG outstanding, revenue covers operations, audits and the bug bounty.

## The reasoning behind each fee

* The **origination** fee falls on the borrower, who starts the loan and receives the liquidity.
* The **interest share** falls on the lender, because it grows with the return the protocol made possible and is only taken when the lender is actually paid.
* The **refinance** fee falls on the borrower, since refinancing is a service to the borrower: it removes the maturity cliff.
* The **liquidation** penalty falls on the borrower who defaulted, and is divided so that keepers are paid for acting and lenders are compensated for the disruption.

## Things Ethosis does not charge for

* The gap between lend and borrow rates. In a peer-to-peer market there is no such gap to take.
* Order flow. The book is public and anyone can export it.
* Data. The indexer and explorer are free and open source.

## Where the money goes

Fee income pays for audits, the bug bounty and day-to-day operations. Once the governance module takes over parameter control, it decides the allocation. See [Corporate structure](/compliance/corporate-structure.md).


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