Fees

Here is everything each side pays.

Borrowers

FeeAmountNotes
Interest0%Always. Your loan never grows on its own.
Origination, maintenance, prepaymentNone
Buying through SpoutNo Spout feeThe issuer's quoted price applies, including its spread
Liquidation penalty4.1% to 12.5% of collateral sold, by assetOnly if liquidated. It first covers any cost of closing calls on that collateral; the rest goes to the Insurance Fund.

Lenders

FeeAmountNotes
DepositNone
Protocol fee on option premium20% of gross premium; 10% while the Insurance Fund is at its target of 2% of the poolSplit evenly between the Insurance Fund and the treasury
Fee on Treasury bill yieldNone
Withdrawal fee0.20% (20 basis points)Applies to the amount you withdraw from the lending pool, on every withdrawal
Instant Senior withdrawal0% to 3% haircut, depending on reserve healthOn top of the withdrawal fee. Stays in the pool for remaining lenders
Queued withdrawalNo haircutThe 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:

SliceAmount
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

FeeBorrowerLender
Interest0%
Deposit0%
Protocol fee on premium20% of gross (10% at target)
Buy through SpoutNo Spout fee
Withdraw from pool0.20% (20 basis points)
Instant withdrawal haircut0% to 3% (dynamic)
Liquidation penalty4.1% to 12.5% (threshold minus 50%, by asset)
Solana network feesStandardStandard