Fees

The fees described below are options that the DAO has for issuing MAI loans. Any mix of fees can be implemented.

Vault fees

Interest Fees

Interest refers to a percentage fee charged on loans. Interest fees grow along the life of the loan and are denominated in the loan token. Users should note that interest fees increase the value of debt, and therefore decrease a loan’s collateral to debt ratio over time.

QiDao does not traditionally charge interest on MAI minted.

Repayment fees

Repayment fees are a percentage fee charged when the loan is repaid. It does not grow in value over time, so it does not affect a user’s collateral to debt ratio. This fee is denominated in the collateral asset.

Most of QiDao’s CDPs charge 0% interest fees and a 0.5% repayment fee.

Performance fees

Performance fees are a percentage fee charged on the yield earned by collateral. This means that a fee is only charged on the amount that the collateral increases over time. As a result, this fee does not lower a user’s collateral to debt ratio over time.

The percentage of fees are updated at the end of every epoch (Sunday 5pm UTC) in response to the trailing 7-day average yield earned by a vault’s collateral. Different collaterals are charged different performance fees based on risk assessments. Ultimately the fees charged are displayed in the manage vault page.

Admin & Ref Fees

QiDao contracts allow for third parties to run their own vaults. This can be vaults with MAI debt or vaults with other tokens as debt. The admin and ref fees allow partner projects to split fees with QiDao.

Opening fees

Opening fees are charged at the time of minting. A percantage of the MAI minted will be charged to the vault in the form of collateral assets.