Fees
Pluz Finance implements a transparent fee structure to ensure sustainable operations and optimal user experience. The fees are designed to cover operational costs and incentivize various stakeholders within the ecosystem.
Types of Fees
Borrowing Fees: Charged on borrowed funds to cover the cost of utilizing the platform's liquidity. These fees are dynamic and depend on market conditions and utilization rates.
Withdrawal Fees: A small fee applied when withdrawing assets from Pluz Vaults. This fee helps maintain the vault's operational efficiency and is generally minimal to avoid impacting user returns significantly.
Performance Fees: Applied to the profits generated through Pluz Vaults. This fee incentivizes the platform to achieve higher yields for users by aligning the platform's success with the users' profitability.
Fee Structure Details
Borrowing Fee: Typically a percentage of the borrowed amount, varying with market conditions.
Withdrawal Fee: A fixed percentage of the withdrawal amount, usually minimal.
Performance Fee: A percentage of the profit earned from vault strategies.
Example Fee Application
If a user borrows $1,000 USDC with a 2% borrowing fee, they will owe $20 in fees. Similarly, if a user withdraws $500 WETH with a 0.1% withdrawal fee, they will pay $0.50. Performance fees depend on the profit generated by the vaults.
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