Protocol Fees

OpenWorld will generate profits and maintain operations by collecting various fees from users when they use and interact with products on the platform. Specifically, OpenWorld will apply the following fee structure for the three main product groups:

Fees for Portfolio Products

  • Management Fee: 0.45% per year, calculated on the net asset value (NAV) that users have deposited in the Portfolio. This is a periodic (epoch-based) account fee, and it is only paid from the capital that the user has staked into the Portfolio product for the system to actively manage the investment portfolio through an automatic rebalancing strategy.

  • Performance Fee: 4.5%, calculated on the trading fees and rewards that users earn from providing liquidity on AMM farms.

Fees for Leveraged Yield Farming (LYF) Products

  • Farming Performance Fee: 4.5%, calculated on the trading fees and rewards that users earn from providing liquidity on AMM farms.

  • Liquidation Fee: 7.5%, applied to the liquidated portion of the position when the user's collateral ratio falls below the allowed threshold. This is not a regular fee and only occurs when LYF positions face special risks.

Fees for Lending Products

  • Platform Fee: 10%, calculated on the interest income earned by lenders. This fee will be accumulated and deducted within each lending pool based on the actual lending interest rates generated in that pool.

Last updated