Fees Mechanism

Protcol admin fee

The Fee for a Fee period is based on % of SMART Tokens value.

Fee Period

A Fee period is the atomic unit for charging admin fees, usually set to 24 hours or one day.

New User Deposits

For new users making a deposit, the following process applies:

1. Upfront Charge: The user is charged upfront for the remaining portion of the current Fee period at the time of deposit.

2. Proportional Refund: If the user withdraws before the Fee period ends, they will receive a proportional refund based on the time left in the Fee period.

Existing Users

For existing users, the fee structure operates as follows:

1. Upfront Charge: Users are charged upfront for the entire upcoming Fee period at each interval, effectively imposing a daily fee.

2. Proportional Refund: If a user withdraws before the current Fee period concludes, they will receive a proportional refund corresponding to the remaining time in the Fee period.

This fee mechanism ensures that users are only charged for the actual time their assets are managed, promoting fairness and transparency in fee assessments.