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There are 3 categories of fees within the Sentiment protocol. Lender fees, Protocol Fees and Borrower Fees.

Protocol Fees

The Sentiment Protocol has a fee switch on Base Pools that will initially be set to 0. The fee is a percent of interest earned from borrowers. Once Sentiment decentralizes, Sentiment token holders can petition to turn the fee switch on as a means to accrue value to token holders.

Lender Fees

Super Pools have a performance fee, which allocators can turn on to collect fees in return for risk management services.

Borrower Fees

Borrowers have three types of fee, which are configurable at both the governance level and the Base Pool level.

  1. Origination Fees: These are fees that are taken as a percent of funds borrowed. Base Pools configure the origination fees.
  2. Interest Rate: This is a continuos fee paid by borrowers on funds borrowed, for the duration of the loan. These can be fixed or dynamic.
  3. Liquidation Fees: This is a fee paid to the protocol if a borrowers position is liquidated. Liquidation fees will go toward an insurance fund that will cover bad debt shortfalls, should they occur.