> For the complete documentation index, see [llms.txt](https://docs.pokefi.xyz/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.pokefi.xyz/reference/fees.md). # Fees and Economics PokeFi follows the proven peer-to-peer lending model: borrowers pay no platform fee, and the platform takes a cut of the interest lenders earn. This aligns PokeFi with sound underwriting rather than volume at any cost, because the platform earns when loans perform and interest is actually paid. *** ## What Borrowers Pay **No platform fee.** Requesting a loan and repaying it carry no PokeFi fee. **Solana network fees.** You pay the Solana transaction fee when you publish a request and when you repay, typically less than $0.01 each. **Custody and insurance.** Vaulting a card may carry a custody fee for storage and insurance, disclosed before you vault. This is a custody-partner cost, not interest. The interest you owe is fixed at origination and set by the loan you agreed to. It is the only substantial cost of borrowing. *** ## What Lenders Pay **A cut of interest earned.** PokeFi takes a percentage of the interest a lender earns on a funded loan, in line with the standard peer-to-peer lending rate of around 5% of interest. The platform does not take any of the principal, and it does not charge on interest that is never paid. **Solana network fees.** You pay the Solana transaction fee when you fund a loan and when you claim a repayment or a default. **Liquidation fee.** If you route a defaulted card to the managed liquidation channel, a liquidation fee applies to cover the cost of the sale. Holding and redeeming the card yourself avoids this. *** ## How Interest Is Calculated Interest is fixed at origination for the full term of the loan: ``` interest = principal × APR × (term in days ÷ 365) total repayment = principal + interest ``` The APR is agreed when the lender funds the loan, at or below the borrower's stated maximum. Because the loan is a term loan, this figure does not change. Repaying early does not reduce the interest owed. **Worked example.** A borrower requests 40,000 USDC for 90 days at a maximum APR of 12%. A lender funds it at 10% APR. * Interest: `40,000 × 0.10 × (90 ÷ 365) = 986.30 USDC` * Total repayment: `40,986.30 USDC` * The lender earns 986.30 USDC in interest, less PokeFi's cut of that interest. *** ## Revenue Streams PokeFi's revenue model is deliberately aligned with performing loans: | Stream | Description | | ----------------------- | ----------------------------------------------------------------- | | Interest share | A cut of lender interest on performing loans, the primary stream | | Custody fee | Optional storage and insurance fee on vaulted cards | | Liquidation fee | Charged when a defaulted card is sold through the managed channel | | Pool spread (post-beta) | A spread on the curated lending pool once it launches | *** ## No Protocol Token PokeFi runs on USDC. There is no protocol token at launch. Introducing one during beta would add regulatory and trust risk that conflicts with building a serious financial product, so it is a later question, if ever. *** ## The Curated Pool (Post-Beta) Peer-to-peer funding is the beta model, where each lender prices and funds individual loans. After beta, a curated pool will let lenders deposit USDC and receive a yield-bearing share, with capital spread across many loans under managed risk parameters. PokeFi will take a spread on the pool rather than a per-loan interest cut for passive lenders. The pool is not live during beta. *** ## Related * [For Borrowers](/getting-started/for-borrowers.md): the borrower cost overview * [For Lenders](/getting-started/for-lenders.md): the lender earning overview * [Valuation and LTV](/core-concepts/valuation-and-ltv.md): how interest and total repayment fit the loan terms --- # Agent Instructions This documentation is published with GitBook. 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