Protocol Overview
Protocol Fees
Understanding protocol fees to using the platform efficiently.
Positions Finance applies minimal, transparent fees to ensure protocol sustainability, reward contributors, and support ongoing development. Here’s a breakdown of all current fee structures across the platform:
Vault Rewards Fee
Whenever you earn yield from staking in a Vault (e.g., Infrared Finance or Berachain Reward Vaults), a 5% fee is automatically deducted from the rewards at the time of claiming.- No fees on principal — only on yield earned.
- Fee supports protocol operations and treasury growth.
- Example: If you earned 100 tokens, 95 go to you, and 5 to the protocol.
Lend/Borrow Market Fees
For Lenders:
When you supply assets to a lending pool, your yield comes from interest paid by borrowers. The protocol charges 20% fees that are deducted from borrower payments—not from your deposits.Note: The 20% margin affects borrower costs, not your deposit directly. What you see as Supply APR is net after margin.
Borrowing Interest Rate Model
Borrowing rates on Positions Finance are dynamic — they adjust based on how much of the available liquidity in a lending pool is being used. Additionally, a 0.1% opening fee is charged on the borrowed principal (one-time per borrow action).- As utilization increases, interest rates rise.
- This encourages balanced supply-borrow behavior and protects liquidity during high demand.
| Utilization % | Borrow APY behavior |
|---|---|
| Low | Low, flat APY |
| Mid (~80%) | Gradual increase |
| High (>90%) | Sharp spike in APY to curb risk |
Fee Structure Summary
| Fee Type | Rate | Applies To |
|---|---|---|
| Lending Yield Cut | 20% | Taken from borrower interest before lender APR |
| Borrow Opening Fee | 0.1% | One-time fee on loan amount |
| Vault Rewards Tax | 5% | Taken from vault yield, not principal |
The protocol fee structure is subject to governance and may be updated as products and integrations evolve. Always check the UI or documentation for the latest rates.