Fee Structure
Comprehensive breakdown of all protocol fees and charges
Dualis Finance employs a transparent fee structure designed to sustain protocol operations while remaining competitive for institutional participants. Supply and withdrawal operations are free of charge, while borrowing fees are collected through asset-specific reserve factors applied to accrued interest. Additional revenue streams include flash loan fees and securities lending commissions.
Fee Overview
The following table summarizes all fees charged across the protocol. The fee model is intentionally simple: suppliers and withdrawers pay nothing, borrowers pay interest that includes a reserve factor contribution, and specialized operations like flash loans carry flat fees.
| Operation | Fee | Notes |
|---|---|---|
| Supply | Free | No fee charged when depositing assets into lending pools. |
| Withdraw | Free | No fee charged when withdrawing supplied assets. |
| Borrow | Reserve factor (5-20%) | A percentage of accrued interest is retained by the protocol. |
| Flash Loan | 0.09% | Flat fee on the borrowed amount, collected within the same transaction. |
| Liquidation | Per-asset incentive | Liquidation bonus varies by collateral asset and tier. |
| Securities Lending | 5-20 bps | Commission on lending fees for tokenized securities. |
Reserve Factors by Asset
The reserve factor determines what percentage of the interest paid by borrowers is directed to the protocol reserve rather than distributed to suppliers. Each asset has its own reserve factor calibrated to reflect its risk profile, liquidity depth, and operational complexity.
| Asset | Reserve Factor | Rationale |
|---|---|---|
| USDC | 10% | Deep liquidity stablecoin with minimal volatility risk. |
| USDT | 10% | High-volume stablecoin with established market presence. |
| wBTC | 15% | Wrapped Bitcoin carries bridge risk and moderate volatility. |
| wETH | 15% | Wrapped Ether with standard crypto volatility profile. |
| CC (Canton Coin) | 20% | Network-native token with emerging liquidity characteristics. |
| T-BILL | 5% | Tokenized treasury bills with minimal credit and market risk. |
| TIFA-REC | 15% | Tokenized institutional financial assets with moderate complexity. |
Flash Loan Fee
Flash loans incur a flat fee of 0.09% of the borrowed amount. This fee is collected within the same atomic transaction and is non-negotiable. Flash loan fees flow directly to the protocol reserve and are subsequently distributed between the treasury and DUAL stakers according to the current fee-sharing ratio.
For example, a flash loan of 1,000,000 USDC would incur a fee of 900 USDC. The borrower must repay 1,000,900 USDC within the same transaction, or the entire operation reverts.
Protocol Fee Rate
In addition to the per-asset reserve factor, the protocol applies a global fee rate of 0.1% on certain administrative operations. This rate applies to protocol-level service charges and is separate from the interest-based reserve factor system.
Liquidation Incentive
Liquidators receive a bonus for repaying unhealthy debt positions. The liquidation incentive varies by collateral asset and is expressed as a percentage of the seized collateral value. This incentive compensates liquidators for the gas cost and execution risk of the liquidation transaction while maintaining protocol solvency.
Liquidation incentives are calibrated per asset based on historical volatility and liquidity depth. Higher-volatility assets carry larger incentives to ensure that liquidators remain motivated even during rapid price movements.
Securities Lending Fees
The securities lending marketplace charges a commission of 5 to 20 basis points on all lending transactions involving tokenized securities. The exact fee depends on the security type, borrowing demand, and loan duration. This commission is split between the protocol reserve and the securities pool that facilitated the transaction.
- Government bonds (T-BILL) -- 5 bps baseline, reflecting the low risk and high liquidity of sovereign debt instruments.
- Corporate bonds -- 10-15 bps, scaling with credit quality and maturity.
- Tokenized equities and alternatives -- Up to 20 bps for less liquid or more complex instruments.