Protocol Fees

This section talks about how the ARTH platform changes fees to keep the protocol stable.

Charging Fees

Fees are charged by the protocol on various actions performed by users on the protocol. The ARTH platform charges three kinds of fees:

  • Mint & Redemption Fees

  • Stability Fees

  • Liquidation Fees

All fees generated by the platform are redirected as revenue for ARTHX holders and distributed via the ARTHX staking pools.

Mint & Redeem Fees

Redemption fees are used as a mechanism to encourage or discourage collateral redemption from within the protocol. Redemption fees are charged in MAHA tokens and are calculated as a percentage of the collateral that is being redeemed.

When Governance decides that the protocol is under high risk and is about to lose its collateral, it sets the redemption fee at a higher percentage (from 5-20%). When Governance decides that the protocol is under low risk, then the redemption fees are reduced to 1-5%.

Stability Fees

Liquidation Fees

Distributing Fees

explain how we dsitrbute fees with a pie chart