Fee

To ensure the long-term operation of the protocol, Scallop charges a certain percentage of transaction fees for specific functionalities. Additionally, Scallop incurs some basic operational costs, which include blockchain Gas Fees and Oracle consensus fees.

Borrowing Fee

When users decide to take out a loan through the platform, a small fee is applied as part of the borrowing process. Specifically, this fee amounts to 0.3% of the total loan amount. This fee is not an additional charge to the borrower but rather is directly deducted from the loan amount at the time of borrowing.

Borrowing Interest Fee

When users fulfill their obligation to pay interest on a loan they've taken, a portion of the total interest paid is allocated to the protocol itself as a form of income. Specifically, 20% of the total interest amount paid by the borrower is redirected to the protocol.

Liquidation Fee

When a user's account becomes unhealthy and undergoes liquidation, a specific fee is applied to the transaction as part of the liquidation process. In this scenario, 1% of the total amount obtained from the liquidation is allocated to the protocol as a form of income.

Flash Loan Fee

When users utilize flash loans—a financial instrument allowing for the borrowing of assets without collateral for a concise duration, typically within a single transaction block—there is a unique fee structure in place. Specifically, for these transactions, 0.06% of the flash loan amount is allocated to the protocol as income.

Sui Network Fee

Sui Network Fees are necessary for processing your transactions on Scallop. These Sui transaction fees are deducted from your wallet when your transaction is executed. (Usually less than 0.0001 SUI)

Oracle Fee

We have added an extra layer of security to the oracle (the entity responsible for providing price information). As a tradeoff, you will need to pay an additional fee to fetch data from the multi-oracle. (Usually less than 0.01 SUI)