> For the complete documentation index, see [llms.txt](https://docs.onspatial.org/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.onspatial.org/how-loans-work/fees.md).

# Protocol fees

Spatial's fee schedule as stored in RiskConfig, who bears each fee, the moment the hub takes it, and where the money goes.

All fees are parameters in `RiskConfig` and are taken at the point where value moves. None is folded into the rates that lenders quote, and none is propped up by token emissions.

## Fee table

| Name                          | Payer                             | Current level                                                                         | Parameter                 |
| ----------------------------- | --------------------------------- | ------------------------------------------------------------------------------------- | ------------------------- |
| Origination                   | Borrower                          | 0.25% of principal                                                                    | `originationBps` = 25     |
| Interest share                | Lender, deducted from interest    | 10% of interest paid                                                                  | `interestShareBps` = 1000 |
| Refinance                     | Borrower                          | 0.10% of principal                                                                    | `refinanceBps` = 10       |
| Liquidation penalty           | Borrower, out of auction proceeds | 3% of debt, with 1 point going to the keeper and 2 shared by lenders and the protocol | `penaltyBps` = 300        |
| Yield share on parked capital | Lender                            | 5% of vault yield, not active yet                                                     | `idleYieldShareBps` = 500 |

## Collection points

* **Origination:** deducted from principal when the loan is disbursed, and transferred to the FeeVault within that transaction.
* **Interest share:** taken from lender interest each time interest is paid, whether through repayment, a cleared rollover or interest recovered in a liquidation, at whatever rate applies at that moment.
* **Refinance:** charged at the moment a rollover auction clears, then added to the new principal.
* **Penalty:** paid out of auction proceeds. The keeper's point comes first; the remaining two follow once lender claims are met.
* **Yield share:** recorded, but no contract uses it until a timelocked change turns it on.

## How fees change

The only routes for changing a fee are `setFeeParams` and `setAuctionParams`, both behind the timelock. A batch is queued together with a rationale hash, sits through the delay, and is then executed, emitting `ParamChanged`. Past collections are never revisited, and origination and refinance fees are each charged a single time. The process is described on [How parameters change](/open-by-design/parameter-changes.md).

## Where fees go

The hub sends every fee to the `FeeVault` contract with an ordinary transfer. The money funds audits, day-to-day operations and the bug bounty. Withdrawals are restricted to the owner of `RiskConfig`, which is currently the multisig and will later be a governance module that decides how funds are spent.

## Rough scale

Suppose the average outstanding balance is 50M USDG, terms run 30 days and APRs sit at 8%:

* Origination: 50M turning over 12 times a year at 0.25% yields about 1.5M USDG.
* Interest share: 8% earned on 50M, of which the protocol keeps 10%, yields about 0.4M USDG.

That totals around 1.9M USDG per year, not counting liquidation income. [How Spatial earns](/reference/revenue.md) goes into more detail.


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