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

Mint & Redeem Fees

Redemption fees is a mechanism that is being used 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 predicts that the protocol is under high risk of losing it's collateral, it sets the redemption fee at a higher percentage (from 5-20%). When Governance predicts that the protocol is under low risk, then the redemption fees is reduced to 1-5%.
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