> For the complete documentation index, see [llms.txt](https://docs.syndromics.xyz/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.syndromics.xyz/protocol/fees.md).

# Fees

Syndromics charges small, explicit fees at the points where value is created. There is no spread hidden in the rate and no token emission.

| Fee                       | Rate (initial)                | Paid by                                  | When                                  |
| ------------------------- | ----------------------------- | ---------------------------------------- | ------------------------------------- |
| Origination fee           | 0.25% of principal            | Borrower                                 | Deducted from principal at settlement |
| Interest share            | 10% of interest paid          | Lender (netted from payout)              | At repayment or refinance             |
| Liquidation penalty share | 2 of the 3 penalty points     | Protocol and lenders (1 point to keeper) | At auction settlement                 |
| Refinance fee             | 0.10% of principal            | Borrower                                 | When a refinance auction clears       |
| Idle-capital yield share  | 5% of vault yield (scheduled) | Lender                                   | On withdrawal from the vault          |

All fee rates live in the ParamController and can only change through the timelock with a published rationale. Fee changes never apply retroactively to an active loan's origination or refinance fees; the interest share applies at the rate in force when the loan was settled.

## Where fees go

Fees accrue to the `FeeCollector` contract and fund audits, the bug bounty and operations. The governance module directs allocation once it takes over parameter control.

## Economics at scale

At 50M USDG average outstanding, a 30-day average term and an 8% average APR:

* Origination: 50M × 12 turns per year × 0.25% ≈ 1.5M USDG per year.
* Interest share: 50M × 8% × 10% ≈ 0.4M USDG per year.

That is roughly 1.9M USDG per year before liquidation income. See [Business model](/resources/business-model.md).


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