# 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: 

* A percentage of interest paid by borrowers. This applies to [Fringe Lending](/fringe-finance-docs/plp/fringe-lending.md), the [USB stablecoin facility](/fringe-finance-docs/usb-platform/platform.md), [Fringe Amplify and Fringe Margin Trade](/fringe-finance-docs/plp/amplify-and-margin-trade.md). These fees are accumulated into the Fringe treasury. 
* A variable percentage of a liquidation, as described in [Liquidations](/fringe-finance-docs/plp/liquidations.md). These fees are paid to the liquidator as a reward for undertaking the liquidation function. 

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**                                                                | <p><strong>Fee or</strong> </p><p><strong>No Fee</strong></p> | **Charged To** | **Notes**                         |
| ------------------------------------------------------------------------ | ------------------------------------------------------------- | -------------- | --------------------------------- |
| Deposit/withdraw to/from the Primary Capital Pool                        | No fee                                                        | Lender         | <p>No fee charged.</p><p><br></p> |
| Deposit/withdraw collateral                                              | No Fee                                                        | Borrower       | <p>No fee charged.</p><p><br></p> |
| <p>Borrow from the </p><p>Primary Capital Pool</p>                       | No fee                                                        | Borrower       | <p>No fee charged.</p><p><br></p> |
| <p><br></p><p>Repay loan to the Primary Capital Pool </p><p><br><br></p> | Fee                                                           | Borrower       | % of interest accrued amount.     |

### Fringe Amplify and Fringe Margin Trade events&#x20;

| **Event**                                          | <p><strong>Fee or</strong> </p><p><strong>No Fee</strong></p> | **Charged To** | **Notes**                                       |
| -------------------------------------------------- | ------------------------------------------------------------- | -------------- | ----------------------------------------------- |
| <p>Deposit/withdraw collateral </p><p><br></p>     | <p>No Fee </p><p><br></p>                                     | Trader         | No fee charged.                                 |
| <p>Borrow from the </p><p>Primary Capital Pool</p> | No fee                                                        | Trader         | <p>No fee charged.<br></p>                      |
| <p>Close trading </p><p>position</p>               | Fee                                                           | Trader         | <p>% of interest accrued amount.</p><p><br></p> |

### USB Stablecoin facility events&#x20;

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

### Liquidation events&#x20;

| **Event**                                                                                                                                                                                                                                       | **Fee or No Fee** | **Charged To** | **Notes**                                                                                                                                                                                                                                                                                               |
| ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ----------------- | -------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |
| <p>Liquidate a position that falls below the minimum </p><p>collateralization level. </p><p><br></p><p>(Liquidations can occur on the Fringe Lending Platform, Fringe Amplify, Fringe Margin Trade and the USB Stablecoin </p><p>Platform.)</p> | Fee               | Borrower       | <p>Paid to the liquidator via the discounted collateral the liquidator receives from the </p><p>borrower’s/trader’s collateral related to the liquidated position. </p><p><br></p><p>The percentage fee charged is variable as described in <a href="/pages/dWRpiqo3i88vEzsd1p5M">Liquidations</a>.</p> |

### Staking events&#x20;

| **Event**                     | <p><strong>Fee or</strong> </p><p><strong>No Fee</strong></p> | **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&#x20;

| **Event**                                     | <p><strong>Fee or</strong> </p><p><strong>No Fee</strong></p> | <p><strong>Charged</strong> </p><p><strong>To</strong></p> | **Notes**                                                                                        |
| --------------------------------------------- | ------------------------------------------------------------- | ---------------------------------------------------------- | ------------------------------------------------------------------------------------------------ |
| <p>Project </p><p>application </p><p><br></p> | <p>No Fee </p><p><br></p>                                     | <p>Project </p><p><br></p>                                 | <p>-- </p><p><br></p>                                                                            |
| <p>Project </p><p>acceptance</p>              | Fee                                                           | Project                                                    | Set by or negotiated with the Fringe Finance DAO (or Platform Admin prior to transition to DAO.) |

### Denomination of platform fee charges&#x20;

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.&#x20;

The denomination of fees charged to users of the platform are as follows:&#x20;

* Portion of interest when repaying a borrow position: paid in the capital asset of the borrow position and accumulated into the Fringe Treasury.&#x20;
* 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.&#x20;
* Liquidation fees: paid in the liquidated collateral asset used to secure the borrow or trading position and paid to the liquidator.


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