# 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 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.


---

# Agent Instructions: Querying This Documentation

If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question.

Perform an HTTP GET request on the current page URL with the `ask` query parameter:

```
GET https://alphbanx.gitbook.io/alphbanx/fees-on-alphbanx.md?ask=<question>
```

The question should be specific, self-contained, and written in natural language.
The response will contain a direct answer to the question and relevant excerpts and sources from the documentation.

Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.