Tarot
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Fees

Borrowing

There are two types of fees paid by borrowers to lenders in the Tarot Protocol. There is a fixed, one-time borrow fee of 0.1% whenever a borrower takes out a new loan. There is also the interest on borrowed tokens that accrues over time, according to the interest rate model.
A portion of the fees (currently 10%, and ranging from 0 to 20%) paid by borrowers to lenders is reserved by the Tarot Protocol. The strategy for reserve management will be at the discretion of governance.
These fees are allocated to the protocol reserves as bTAROT tokens:
  • 10% reserve factor
  • 0.1% borrow fee
  • No deposit fee
  • No withdrawal fee

Lending (Single-Sided)

There are no fees paid by lenders for supplying tokens to an individual lending pool, and no deposit or withdrawal fees.
  • No fees
  • No deposit fee
  • No withdrawal fee

Supply Vaults

A performance fee (currently 10%, and ranging from 0 to 20%) on earned yield is reserved by the Tarot Protocol. The strategy for reserve management will be at the discretion of governance.
These fees are allocated to the protocol reserves as tTokens:
  • 10% performance fee on earned yield
  • No management fee
  • No deposit fee
  • No withdrawal fee

Auto-Compounding Vaults

The reinvestment process for Tarot Vaults is permissionless, so anyone can invoke it to auto-compound an entire lending pool and receive the reward bounty (1% of the pending rewards).
These fees are allocated to the reinvest bounty as DEX reward tokens:
  • 1% reinvest fee
  • No deposit fee
  • No withdrawal fee

Liquidations

Borrowers pay a liquidation incentive (currently 4%, and ranging from 1% to 5%) on their borrowed amount to liquidators if their borrow positions get liquidated.
These fees are allocated to the liquidator as collateral tokens:
  • 4% liquidation incentive
Last modified 1mo ago