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Fees

Borrowing

There are two types of fees paid by borrowers in the Leverage Finance. There is a fixed, one-time borrow fee, which is automatically added to the borrowed amount whenever a borrower takes out a new loan. There is also the interest on borrowed tokens that accrues over time, according to the interest rate model.
The borrow fee is 0.1%. These fees are paid to the Leverage token liquidity providers.
  • No deposit fee
  • No withdrawal fee

Lending (Single-Sided)

There are no fees paid by lenders for supplying tokens to an individual lending pool, and no deposit or withdrawal fees.
  • No fees
  • No deposit fee
  • No withdrawal fee

Auto-Compounding Vaults

The reinvestment process for Leverage Vaults is permissionless, so anyone can invoke it to auto-compound an entire lending pool and receive the reward bounty (0.5% of the pending rewards).
Leverage charge 5% (performance fee) of the harvested profits.
  • No deposit fee
  • No withdrawal fee

Liquidations

Borrowers pay a liquidation incentive (currently 5%, and ranging from 1% to 5%) on their borrowed amount to liquidators if their borrow positions get liquidated.
These fees are allocated to the liquidator as collateral tokens:
  • 5% liquidation incentive