Pluto Fees
Pluto takes fees for different operations. Here’s how it works:
Protocol Fees: All fees earned by Pluto are directed to Pluto Guardians. These fees, usually collected in USDC / SOL, are deposited into the Pluto Treasury.
Vault-Specific Fees: Pluto Fees may differ from vault to vault, depending on integrations and the nature of the vault.
Fee Stability: We aim to keep fees stable, meaning they won’t change often. If they do, we’ll announce it through our blog to keep everyone informed.
Liquidation Penalty Fee
This fee varies depending on the collateral asset. Check the Parameter section for the specific liquidation penalty fees for each asset.
Subscription Fee – 0%
Good news! There’s no subscription fee to deposit assets into Earn Vault or to enter a position in the Leveraged Vault.
Borrow and Supply Fee
At Pluto, we don’t charge a protocol fee when opening a position. Instead, Pluto takes a small cut from both the borrower’s and lender’s APY. The amount we take is based on the utilization rate—higher utilization means a larger share for Pluto.
This fee ranges from 0% to 10%, keeping the system balanced and fair for both borrowers and lenders. It’s like Pluto saying, "Hey, let’s keep things efficient and fair for both sides!"
If the utilization rate is 50%, Pluto will take 5% from both the lender's APY and the borrower’s APY.
For a lender’s APY of 7.5%, the fee would reduce it to: \begin{equation*} 7.5\% \times (1 - 5\%) = 7.125\% \end{equation*}
For a borrower’s APY of 15%, the fee would increase it to: \begin{equation*} 15\% \times (1 + 5\%) = 15.75\% \end{equation*}
Not too bad, right? This keeps things fair, balanced, and ensures that everyone stays comfortable while maximizing efficiency.
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