Fees on AlphBanX

AlphBanX charges various fees to support its stability and growth. Collected fees are distributed dynamically back to ABD Liquidity providers and ABX holders depending on TVL in Earn auction pools. Higher proportion of ABDs locked in Earn auction pools lead to more fees for ABX stakers, whereas a lower proportions leads to more fees for ABD bidders. This is a feedback mechanism to prevent ABD demand bubbles.

The following is a comprehensive list of all fees charged by AlphBanX.

• Minting Fee: 0.5% of the loan value.

  • This fee is paid by the borrowers when ABD is minted through a loan.

  • This fee goes to ABD bidders and ABX stakers.

• Borrowing Fee: 1% - 30% of the loan value per year, based on selected interest rate.

  • This fee is paid by the borrowers and goes to ABD bidders and ABX stakers.

• Successful Bid Fee: 0.5% (5% pool), 1% (10% pool), 1.5% (15% pool), 2% (20% pool).

  • This fee is paid by the bidders on the collateral received, when their bids are successfully matched against a liquidated loan.

• Closing Bid Fee: 0.5%.

  • This fee is paid by the bidders when they close their bids and withdraw from the Earn auction pools.

• Redemption Fee: 1% of the amount being redeemed.

  • This fee is paid by the users who are redeeming ABDs.

  • 0.5% goes to the loan's borrower and 0.5% goes to ABD bidders and ABX stakers.

• Liquidation Fee: 5% of the loan value.

  • Paid by the borrowers from their collaterals when their loans are liquidated.

  • This fee goes to ABD bidders and ABX stakers.