πŸ’ΈFee Schedules

There is no gas fee charged to users in the Term Structure protocol. Thanks to the secure and efficient zkTrue-up system, users do not need to worry about high gas fees due to high frequency of transaction tickets for placing and canceling orders. Part of the fees the protocol received will be used to pay gas fees for rollups on the Ethereum mainnet by zkTrue-up. Two types of fees will be charged by the protocol - Withdraw Fees and Transaction Fees.

Withdraw Fees

Withdraw Fees are charged when users withdraw tokens including Base Tokens and tTokens. The fee is equivalent to ~ USD 2 on the user's Base Token to be withdrawn for each withdrawal action.

Transaction Fees

Transaction fees are charged after the orders are matched. There are different fee schedules for each market. Please refer to below for details.

There is no fee charged to place or cancel orders. All other actions on unmatched orders are free of charge too.

Primary Markets Fee Schedules

Borrowers and lenders need to pay fees after the successful auction match in the Primary Markets.

Fees to borrowers are 10% of the interest to be paid for their borrowing. Hence, the fees will be decided by the borrowing amount, auction result of interest rates, and maturity dates.

Fees to lenders are the equivalent amount of 0.1% per annum of the lending amount.

N: Borrowing or Lending amount in Primary Markets
R: Matched interest rate
D: Days (Maturity date - Auction date)

Borrower fee = N * R * 10% * (D/365)
Lender fee = N * 0.1% * (D/365)

For example., if Alice borrows 10,000 in USDC from Bob at 5% for 180 days, Alice needs to pay the fee amount at 10,000 * 5% * 10% * (180/365) ~= 24.66 in USDC and Bob needs to pay the fee amount at 10,000 * 0.1% * (180/365) ~= 4.93 in USDC.

Secondary Markets Fee Schedules

Buyers and sellers need to pay fees after their orders are matched in the Secondary Markets.

Different fees are charged to users according to whether they are market makers or market takers. For each secondary-market transaction, fee charges to market makers are 0.1%per annum rate on the notional value of tTokens while fee charges to market takers are 0.3% per annum rate on the notional value of tTokens regardless of whether the tTokens are traded at a discount or premium to par value. Notional value is the number of tTokens that can be redeemed for the same number of the underlying tokens at maturity.

N: Notional value of tTokens
D: Number of days to maturity (maturity date - trade date)

Market Maker Fees = N * 0.1% * (D/365)
Market Taker Fees = N * 0.3% * (D/365)

Repo Markets Fee Schedules

Borrowers and lenders need to pay fees after repo orders are matched in the Repo Markets.

Different fees are charged to users according to whether they are market makers or market takers regardless of whether they are borrowers or lenders in the Repo Markets. Fee charges to market makers are 0.2% per annum rate on the notional value of the collateralized tTokens while fee charges to market takers are 0.4% per annum rate on the notional value of the collateralized tTokens regardless of whether the tTokens are traded at a discount or premium to par value.

The fee will be deducted through the initial settlement of a repo transaction.

N: Notional value of tTokens
D: Number of days to maturity (maturity date - trade date)

Market Maker Fees = N * 0.2% * (D/365)
Market Taker Fees = N * 0.4% * (D/365)

Minimum Required Transaction Fee

We will impose a minimum required transaction fee to cover the rollup and data availability costs. This minimum fee applies to all orders, including those in the primary, secondary, and repo markets. By setting this minimum fee, we aim to ensure that every transaction covers the essential operational costs. Consequently, this fee will serve as a constraint on the number of orders our users can place. The transaction fee determined when an order is matched must be sufficient to meet this minimum requirement, thus influencing the number of orders specified by our users.

The fee will be charged in base tokens equivalent to the value of ETH. For example, assuming the price of USDC is 1 USD and the price of ETH is 3000 USD. If there is a lend order with a lending amount of 1000 USDC and the current minimum fee for a lend order is 0.0007 ETH, the minimum fee will be charged in an amount of USDC equivalent to 0.0007 ETH. This calculation would be: 0.0007 (ETH amount) * 3000 (ETH price) / 1 (USDC price) = 2.1 USDC.

Minimum Fee Schedules

  • Minimum fee for a lend order: 0.0007 ETH

  • Minimum fee for a borrow order: 0.009 ETH

  • Minimum fee for a secondary taker order: 0.0014 ETH

  • Minimum fee for a secondary maker order: 0.0007 ETH

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