# 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.\
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The distribution ratio is determined by the TVL in Earn auction pools:

* A higher percentage of ABD locked in Auction pools increases fee rewards for ABX stakers.
* A lower ABD participation rate in Auction pools 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.
* **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**: 1.5% of the ABD amount redeemed.
  * 1.5% is sent to the loan borrower (whose position is force-closed).
* **Liquidation Fee**: 0.5% of the loan value.
  * Taken from the borrower’s collateral during liquidation.
  * Distributed to ABD depositors and ABX stakers.