Protocol Fees

Levrex Finance charges minimal fees designed to sustain the protocol, reward stakeholders, and ensure long-term stability. These fees are transparently integrated and do not compromise user experience or yield performance.

Fee Structure

1. Borrowing Interest

Borrowers pay a dynamic interest rate on AUSD/ETH, determined by market demand and utilization. This interest goes to AUSD/ETH lenders as passive income.

2. Performance Fee on Auto-Compounding

A small portion (7.5%) of compounded rewards is taken as a performance fee during each auto-compounding cycle. This incentivizes protocol sustainability and LKAT liquidity incentives.

3. Liquidation Penalty

If a leveraged position is liquidated, a portion of the collateral (typically 5–10%) is collected as a penalty. This fee is distributed to liquidators and used to protect lenders.

Fee Usage

Collected fees are used to:

• Incentivize liquidity providers and protocol contributors

• Reinvest into LKAT mining and staking rewards

• Fund audits, development, and governance operations

All fees are displayed transparently in the app interface and may evolve through governance votes.