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).

$Utilization = (Borrowed Liquidity) / (Total Supplied Liquidity)$

• 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.