Protocol Fees

At Vanna, we maintain a straightforward and competitive fee structure to ensure transparency and affordability for our users. Here’s an overview of our fees:

Liquidation Fee:

Shared between Liquidity Providers (Lenders) & Protocol

Liquidation fees will be distributed among third-party liquidators, the Vanna protocol, and Liquidity Providers (Lenders) whenever a margin account is liquidated. The liquidation is triggered when 80% of the deposited collateral loses its value.

• 5% goes to the liquidator

• 2.5% goes to the protocol

• 2.5% goes to the lender

• 10% of the liquidation amount is returned to the margin account owner

The distribution of fees may vary slightly depending on the risk profile of the margin account.

Borrowing Fee:

• A fee of 0.1% is charged on every borrowing action. This fee is basically a spread between Borrow APY & Supply APY which is calculated based on the total amount borrowed and is deducted at the time of the borrowing transaction based upon interest rate model. Every Pool has its own interest rate curve. Based on utilization rate, the borrow APY changes as per the formula shown below.