Fees on AlphBanX

AlphBanX charges various fees to support its stability and long-term sustainability. Collected fees are dynamically distributed between ABD liquidity providers (auction pool depositors) and ABX stakers. The distribution ratio is determined by the TVL in Earn auction pools:

A higher percentage of ABD locked in Earn pools increases fee rewards for ABX stakers.
A lower ABD participation rate channels more fees to ABD bidders.

This creates a feedback mechanism that helps dampen demand bubbles and maintain economic balance.

Below is a comprehensive list of fees charged by the protocol:

Minting Fee: 0.5% of the loan value.
- Paid by the borrower when minting ABD (initial or incremental).
- Deducted from the borrower’s ALPH collateral.
- Distributed to ABD auction pool depositors and ABX stakers.
Borrowing Fee: 1% - 30% of the loan value per year, based on selected interest rate.
- Based on the user’s selected interest rate when creating the loan.
- Accrues continuously and is payable upon repayment.
- Distributed to ABD depositors and ABX stakers.
- Borrowing fees accrue every 6 hours and are calculated each time the borrower interacts with their loan, such as withdrawing more ABD, repaying, or during liquidation and redemption events.
Successful Bid Fee: 0.5% (5% pool), 1% (10% pool), 1.5% (15% pool), 2% (20% pool).
- Applied when ABD deposits are matched with liquidated loans.
- Charged on the value of the collateral received.
- Distributed to the protocol treasury and stakers.
Closing Bid Fee: 0.5%.
- Charged when a user manually withdraws their ABD from an auction pool.
- Encourages long-term participation in the Earn mechanism.
Redemption Fee: 1% of the ABD amount redeemed.
- 0.5% is sent to the loan borrower (whose position is force-closed).
- 0.5% is distributed to ABD depositors and ABX stakers.
- Helps protect against unnecessary redemptions while fairly compensating impacted parties.
Liquidation Fee: 5% of the loan value.
- Taken from the borrower’s collateral during liquidation.
- Distributed to ABD depositors and ABX stakers.

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Last updated 3 days ago

Fees on AlphBanX

A higher percentage of ABD locked in Earn pools increases fee rewards for ABX stakers.
A lower ABD participation rate channels more fees to ABD bidders.

This creates a feedback mechanism that helps dampen demand bubbles and maintain economic balance.

Below is a comprehensive list of fees charged by the protocol:

Minting Fee: 0.5% of the loan value.
- Paid by the borrower when minting ABD (initial or incremental).
- Deducted from the borrower’s ALPH collateral.
- Distributed to ABD auction pool depositors and ABX stakers.
Borrowing Fee: 1% - 30% of the loan value per year, based on selected interest rate.
- Based on the user’s selected interest rate when creating the loan.
- Accrues continuously and is payable upon repayment.
- Distributed to ABD depositors and ABX stakers.
- Borrowing fees accrue every 6 hours and are calculated each time the borrower interacts with their loan, such as withdrawing more ABD, repaying, or during liquidation and redemption events.
Successful Bid Fee: 0.5% (5% pool), 1% (10% pool), 1.5% (15% pool), 2% (20% pool).
- Applied when ABD deposits are matched with liquidated loans.
- Charged on the value of the collateral received.
- Distributed to the protocol treasury and stakers.
Closing Bid Fee: 0.5%.
- Charged when a user manually withdraws their ABD from an auction pool.
- Encourages long-term participation in the Earn mechanism.
Redemption Fee: 1% of the ABD amount redeemed.
- 0.5% is sent to the loan borrower (whose position is force-closed).
- 0.5% is distributed to ABD depositors and ABX stakers.
- Helps protect against unnecessary redemptions while fairly compensating impacted parties.
Liquidation Fee: 5% of the loan value.
- Taken from the borrower’s collateral during liquidation.
- Distributed to ABD depositors and ABX stakers.

PreviousRedemptions NextRoles in AlphBanx

Last updated 3 days ago