V3 Risk Parameters
  • Notional V3
  • Risks
    • Economic Risks
    • Technological Risks
  • Prime Cash Markets
    • Prime Cash Interest Rate Model
  • fCash Markets
    • fCash Markets
    • fCash Maturities
    • fCash Interest Rate Model
  • nTokens (LP)
    • nTokens
    • Deposit Shares
    • Leverage Thresholds
    • nToken ifCash Residuals
    • Incentives
  • Collateral Framework & Liquidations
    • Overcollateralization structure
    • Exchange Rate Risk
    • Prime Cash risk adjustments
    • fCash risk adjustments
    • nToken risk adjustments
  • Asset Liquidity Risk
    • Prime Cash Supply Caps
  • Leveraged Vaults
    • Collateral structure & leverage
    • Vault Shares Valuation
    • Liquidations
    • Maximum Pool Share
    • Fees
  • Notional's Backstop
    • Treasury
    • sNOTE
  • Notional Finance
  • Notional V3 Docs
  • Technical Docs
  • Collateral Onboarding Docs
  • Notional Dune Dashboard
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  1. Leveraged Vaults

Fees

Notional's governance can set an additional fee rate that increases the borrow interest rate of leveraged vault borrowers. The fee is denominated in 5 BPS. Such that a feeRate5BPS of 10 would imply that leveraged vault borrowers are charged an additional 0.50% in interest on top of their trade implied borrow rate.

These fees are then split between nToken holders and the protocol's reserve based on the reserveFeeShare parameter. A reserveFeeShare of 80 would allocate 80% of the generated fees to the protocol's reserve.

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Last updated 1 year ago