Borrow fees (coming soon)
:::caution Coming soon
Borrow is not live. Treat the rates below as the planned on-chain schedule for MarginRFQCore. Names and payloads may change.
:::
Protocol fees on Borrow are charged on-chain by MarginRFQCore and transferred to MarginRFQTreasury. Lender interest (interestRateBpsPerAnnum) is not a protocol fee.
Same formula as options fees: power-of-two right shifts. fee = amount >> power. These powers are immutable constants on the core (borrowFeeDivisorByTwo, liquidationFeeDivisorByTwo): not owner-settable like options treasury powers.
Defaults
| Fee | Power | Fraction | Approx. bps | Charged on | Token | Who pays | When |
|---|---|---|---|---|---|---|---|
| Borrow protocol | 9 | 1/512 | 19.53 | Loan principal | Loan token | Pulled from the lender; borrower receives amount - fee | borrow |
| Refinance protocol | 9 | 1/512 | 19.53 | New loan principal | Loan token | Pulled from the new lender; taken from borrower proceeds after the old loan is repaid | refinance |
| Liquidation protocol | 7 | 1/128 | 78.125 | Surplus after the lender’s expected amount | Loan token | Borrower’s leftover surplus | liquidateFull, liquidatePartial, liquidateEarly |
Outstanding principal is the full loan amount, including the borrow fee the borrower never received. Refinance reverts RefinanceInsufficientLoanAmount if the new amount does not cover the old amount owed plus the new borrow fee.
What moves
| Action | Lender | Borrower | Treasury |
|---|---|---|---|
borrow | Sends full principal | Receives principal minus borrow fee | Borrow fee |
refinance | New lender sends full new principal; old lender is repaid amount owed | Receives newAmount - amountOwed - fee (may be 0) | Borrow fee on the new principal |
| Liquidation (surplus) | Expected repayment (capped at collateral / seized value) | Remaining surplus after haircut tip/penalty and liquidation fee | surplus >> 7 |
| Liquidation (no surplus) | Whatever collateral covers | 0 | 0 |
repay / repayFull | Credited repayment | Pays amount owed (principal + accrued interest) | none |
Liquidation surplus is collateralOrSeizedValue - lenderExpected. The protocol fee is taken from that remainder; if the fee exceeds the borrower’s share, the borrower gets 0.
Not charged
- No protocol fee on
repay,repayFull, lender escrow withdraw, or write-off - No referral fees
- No liquidation fee when there is no surplus over the lender’s expected amount
- Options premium / underlying / exercise fees are separate: Fees