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Fees

WeissFi provides a transparent fee structure to ensure users have full visibility into the costs associated with borrowing, repayments, liquidations, and redemptions. Below is a breakdown of all applicable fees.

Borrowing Fees​

📌 Borrowing Fee​

  • 0% fee on the borrowed amount.
  • No fee is applied when opening a vault or updating the interest rate.

💸 Upfront Interest Payment​

  • When opening a vault or updating interest rates, borrowers must pay 15 days of average protocol interest upfront.
  • This interest is added to the debt at vault creation or rate modification.
  • Prevents abuse by ensuring commitment when adjusting rates.
  • 85% → sDORI holders, 15% → gDORI holders (Stability Pool).

Interest Rate (Ongoing Borrowing Cost)​

📈 Annual Interest Rate (User-Defined)​

  • Borrowers set their own interest rate when creating a loan.
  • Interest accrues over time and is added to the outstanding debt.
  • A higher interest rate reduces redemption risk, but increases borrowing cost.

🔁 Interest Rate Modifications​

  • Borrowers can modify their interest rate at any time.
  • Each interest rate modification adds 15 days of average protocol interest (at the new rate) to the debt.
  • This mechanism prevents abuse and ensures fair compensation to liquidity providers.

Interest Fee Distribution:

  • 85% → sDORI holders
  • 15% → gDORI holders (Stability Pool)

Liquidation Fees​

  • If a borrower's Loan-to-Value (LTV) exceeds 83.33% (120% MCR), their collateral is automatically liquidated.
  • A 10% liquidation bonus is applied — Stability Pool depositors receive collateral at a 10% discount.
  • The borrower keeps any remaining collateral after liquidation.

Liquidation Distribution:

  • 100% → Stability Pool (gDORI holders)

Redistribution Fees​

  • If the Stability Pool is empty during a liquidation, the debt and collateral are redistributed to other active borrowers.
  • A 20% redistribution fee is applied to the redistributed collateral.

Redistribution Distribution:

  • Remaining borrowers absorb the debt proportionally
  • The 20% fee compensates them for taking on additional risk

Redemption Fees​

  • Redemptions occur when DORI depegs and creates arbitrage opportunities.
  • Fees are based on a dynamic variable called baseRate.

Redemption Fee Formula:​

  • baseRate increases with each redemption and decays exponentially over time (half-life of 6 hours).
  • High redemption demand → higher fees.
  • Low redemption demand → fees gradually reduce.

Borrowers affected by redemptions do not lose value in USD terms — their debt is reduced proportionally.

Summary Table​

Fee TypeDetails
Borrowing Fee0% – No borrowing fee.
Upfront Interest15 days of average protocol interest paid upfront at vault creation or interest rate change.
Ongoing InterestSet by the borrower, accrues over time.
Interest Split85% to sDORI holders, 15% to gDORI holders (Stability Pool).
Liquidation Bonus10% bonus — Stability Pool depositors receive collateral at a 10% discount.
Redistribution Fee20% fee when debt is redistributed to other borrowers (if Stability Pool is empty).
Redemption Fee0.5% base + dynamic rate that halves every 6 hours.

WeissFi ensures full transparency and predictability, with no hidden costs. All fees are clearly defined, and borrowers remain in full control of their interest rates.