Protocol Fees

The way fees are collected in Taurus v1 is that they are deposited straight into the Stable coin lending pool used for the position so they earn some of the lending APY until we withdraw.

These funds double as as "protocol reserves" which are used to counter act bad debt as much as possible.

Taurus currently earns fees in one of two ways:

If a user's position is liquidated, a percentage goes to a third-party liquidator (usually, a liquidation bot) that liquidated the account. The remainder of the fee goes to the Taurus Protocol.

The current liquidation fee is 5% of the value of the liquidated position. Of that:

• 50% goes to the liquidator

There is currently no loan origin fee for utilizing Taurus leverage.

When a user withdraws or closes their position, 5% of any profit goes to the Taurus Protocol. In the future, governance DAO votes may change to modify the fee structure on a farm by farm basis.

50% of the protocol profit from performance fees will be directed to users who participate in the Taurus Farm by staking the TAURUS token.

Note: Taurus does not currently charge any fee on the APY spread between lent and borrowed assets.