Protocol Fees

Liquidation Fee

If an N-Position is liquidated, a portion of collateral goes to a third-party liquidator who liquidated the position, and some percentage goes to the protocol.

• Current liquidation fee going to the liquidator: TBA

• Current liquidation fee going to the protocol: TBA

These figures can be voted on in the DAO

Exit Fee: 5%

Deducted upon withdrawal of funds from Nilla vaults. A portion of this fee will be distributed to the suppliers of NillaConnect.

The current portion shared to the suppliers is TBA

APY Spread Fee

The protocol takes spread as a fee between the APY which liquidity providers recieve and the fee & farmers pay for borrowing their assets. The exact value of this fee is calculated as following:

• Borrowers pay borrow APY to liquidity providers and pay spread fee to DAO spreadFee. That means effective borrow rate for borrowers is calculated as $r(u)*(1+spreadFee)$, while the DAO receives $r(u)*spreadFee$