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.