Fees
Last updated
Last updated
Inverter Protocol adopts a simplified yet flexible fee structure to facilitate both ease of use and adaptation to diverse operational needs within the protocol.
The protocol employs a two-tier fee system consisting of:
Global Default Fee
Workflow-Specific Fee
Note: Not all functions incur fees. Function which collect fee have to have this feature added explictly.
These baseline fees percentages are applied across the functions implementing a fee deduction, unless overridden by specific conditions.
Default Collateral Fee: Applies to transactions involving collateral, such as depositing collateral to mint the issuance token or other collateralized operations.
Default Issuance Fee: Applies to transactions involving the workflow's issuance token, such as redeeming the issuance token for collateral.
The protocol allows for fee customization on a per-workflow, per function basis to accommodate diverse needs within the ecosystem. This flexibility ensures fees can be tailored to specific economic and operational conditions.
Collateral Workflow Fee: This fee can be set for specific workflow functions to handle collateral differently than standard operations.
Issuance Workflow Fee: Similar to collateral fees, issuance fees can also be adjusted for particular workflow functions.
A clear and streamlined process determines which fee to apply:
Workflow-Specific Check: The system first checks if a workflow-specific function fee has been set for the.
Global Default Fallback: If no specific setting is found, the transaction defaults to the global fee.
This approach minimizes complexity while offering the flexibility to address specific scenarios effectively.
Control over fee settings is rigorously governed to align with broader community interests and protocol security standards. See our dedicated Governance page for more information.
