Fee Structure

Platform fees

Platform fees are charged for events within the Fringe Finance Platform. Events that may incur a fee include user interactions (such as taking out a loan) and some events do not involve a user interaction (such as interest being charged against a loan.)
Currently, fees are charged only as follows:
Even though fees are only charged as itemized above, Fringe may charge other fees in the future as needed to ensure the best balance of incentive-compatible participation in the Fringe ecosystem. The following table lists the possible fee events, who may be charged to and the basis of the fee.

Fringe Lending events

Event
Fee or
No Fee
Charged To
Notes
Deposit/withdraw to/from the Primary Capital Pool
No fee
Lender
No fee charged.
Deposit/withdraw collateral
No Fee
Borrower
No fee charged.
Borrow from the
Primary Capital Pool
No fee
Borrower
No fee charged.
Repay loan to the Primary Capital Pool
Fee
Borrower
% of interest accrued amount.

Fringe Amplify and Fringe Margin Trade events

Event
Fee or
No Fee
Charged To
Notes
Deposit/withdraw collateral
No Fee
Trader
No fee charged.
Borrow from the
Primary Capital Pool
No fee
Trader
No fee charged.
Close trading
position
Fee
Trader
% of interest accrued amount.

USB Stablecoin facility events

Event
Fee or
No Fee
Charged To
Notes
Deposit/withdraw collateral to/from the USB Stablecoin
facility
No Fee
Borrower
No fee charged.
Take out $USB loan from the USB
Stablecoin facility
No fee
Borrower
No fee charged.
Repay $USB
stablecoin loan to the USB Stablecoin facility
Fee
Borrower
% of interest accrued amount.
Deposit/withdraw $USB to/from USB Savings Pool
No fee
USB Saver
No fee charged.

Liquidation events

Event
Fee or No Fee
Charged To
Notes
Liquidate a position that falls below the minimum
collateralization level.
(Liquidations can occur on the Fringe Lending Platform, Fringe Amplify, Fringe Margin Trade and the USB Stablecoin
Platform.)
Fee
Borrower
Paid to the liquidator via the discounted collateral the liquidator receives from the
borrower’s/trader’s collateral related to the liquidated position.
The percentage fee charged is variable as described in Liquidations.

Staking events

Event
Fee or
No Fee
Charged To
Notes
Stake/unstake tokens
No Fee
Staker
No fee charged.
Pay staking rewards to staker
No Fee
Staker
No fee charged.

Governance events

Event
Fee or
No Fee
Charged
To
Notes
Project
application
No Fee
Project
--
Project
acceptance
Fee
Project
Set by or negotiated with the Fringe Finance DAO (or Platform Admin prior to transition to DAO.)

Denomination of platform fee charges

Fees charged to users of the platform are not paid in FRIN tokens. This would result in a poor user experience, where users would have to first purchase FRIN tokens to use the platform. The Fringe Finance platform avoids this friction.
The denomination of fees charged to users of the platform are as follows:
  • Portion of interest when repaying a borrow position: paid in the capital asset of the borrow position and accumulated into the Fringe Treasury.
  • Portion of interest when repaying a trading position: effectively paid by the trader in the collateral asset used to secure the trading position, but swapped for the capital (short) asset and accumulated into the Fringe Treasury.
  • Liquidation fees: paid in the liquidated collateral asset used to secure the borrow or trading position and paid to the liquidator.