# Fees

> Solana network fees apply to every transaction. They are paid in SOL to the network, not to Spout, and are usually very small.

Canonical: https://spout.finance/docs/fee-structure/

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Here is everything each side pays.

## Borrowers

| Fee | Amount | Notes |
| --- | --- | --- |
| Interest | **0%** | Always. Your loan never grows on its own. |
| Origination, maintenance, prepayment | None |  |
| Buying through Spout | No Spout fee | The issuer's quoted price applies, including its spread |
| Liquidation penalty | **4.1%** to 12.5% of collateral sold, by asset | Only if liquidated. It first covers any cost of closing calls on that collateral; the rest goes to the Insurance Fund. |

## Lenders

| Fee | Amount | Notes |
| --- | --- | --- |
| Deposit | None |  |
| Protocol fee on option premium | **20%** of gross premium; 10% while the Insurance Fund is at its target of 2% of the pool | Split evenly between the Insurance Fund and the treasury |
| Fee on Treasury bill yield | None |  |
| Withdrawal fee | **0.20%** (20 basis points) | Applies to the amount you withdraw from the lending pool, on every withdrawal |
| Instant Senior withdrawal | **0%** to 3% haircut, depending on reserve health | On top of the withdrawal fee. Stays in the pool for remaining lenders |
| Queued withdrawal | No haircut | The withdrawal fee still applies |

## Everyone

Solana network fees apply to every transaction. They are paid in SOL to the network, not to Spout, and are usually very small.

## How the protocol fee works, with numbers

In a week where options buyers pay $30,000 of premium and the Insurance Fund is below target:

| Slice | Amount |
| --- | --- |
| Lenders (80%) | **$24,000** |
| Insurance Fund (10%) | **$3,000** |
| Treasury (10%) | **$3,000** |

Once the Insurance Fund reaches its target, the same week would give lenders $27,000 and the Insurance Fund and treasury $1,500 each. The fee rate for each contract is fixed when its expiry is first recorded.

## Side by side

| Fee | Borrower | Lender |
| --- | --- | --- |
| Interest | **0%** |  |
| Deposit |  | **0%** |
| Protocol fee on premium |  | **20%** of gross (10% at target) |
| Buy through Spout | No Spout fee |  |
| Withdraw from pool |  | **0.20%** (20 basis points) |
| Instant withdrawal haircut |  | **0%** to 3% (dynamic) |
| Liquidation penalty | **4.1%** to 12.5% (threshold minus 50%, by asset) |  |
| Solana network fees | Standard | Standard |