Fee Structure
Volt has implemented a fair and transparent fee structure to ensure balanced participation between lenders and borrowers. Unlike many other lending protocols, Volt evenly splits the fees between both sides of the transaction.
The fee is set at 11% of the interest rate for each side, totaling a 22% fee of the interest rate.
For borrowers: The fee is applied when accepting the loan.
For lenders: The fee is applied when loans are repaid, along with the earned interest.
This structure promotes fairness and protocol sustainability while providing clarity for all users within Volt.
Fees example:
Lender lends 1 $ETH for 700 $VIRTUAL collateral to Borrower with a 1.74% interest rate over 7 days
Upon accepting the offer User B receives in $ETH:
(loan amount - fee), where fee is (loan amount*interest rate*fee))
1 - 1 * 1.74% * 11% = 0.998086 $ETH
When borrower repays the loan at the end of the 7 days, Lender receives in $ETH:
loan amount + (interest - fee) where fee is (loan amount*interest rate*fee)
1 + (1 * 1.74% - 1 * 1.74% * 11%) = 1 + (0.0174 - 0.001914) = 1.015486 $ETH
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