Fees

Defi Strategies fees

A performance fee is charged on the yield generated from each strategy. A snapshot is taken of the strategy's total assets during deposit(), withdraw(), and setStrategyFeeRate() function calls as lastRecordedTotalAssets. This snapshot is then compared at the next interaction, and if yield has been generated, the fee is charged and sent to the Maple Treasury.

The strategy fee is calculated using the formula:

$$\huge \text{strategyFee} = \dfrac{\text{yieldAccrued} \times \text{strategyFeeRate}}{1 \times 10^6}$$

Where:

• yieldAccrued is the total yield accrued since the last deposit(), withdraw(), or setStrategyFeeRate() function call.

• strategyFeeRate is the fee rate for the strategy, which can be no greater than 1 x 10^6.

• 1 x 10^6 represents the scaling factor for 100%, declared as the constant HUNDRED_PERCENT in the contracts.

The fee rate is set by the protocol admins on a per-strategy basis and can be changed at any time.

Reactivation of Strategies

Protocol admins can impair and deactivate strategies, with the ability to reactivate them at any time. During reactivation, a boolean flag indicates whether the accounting should be updated, which directly affects fee calculations.

If admins choose to update the accounting, a new snapshot of total assets will be taken and fees won't be charged for the deactivated period. However, if they opt not to update the accounting, fees will be charged retroactively for the entire period.

This flexibility is valuable because strategies are implemented as external contracts, making it impossible to predict potential future issues and determine the optimal accounting approach in advance.

Loan Fees

Fees in the Maple protocol can be separated into three categories:

1. Origination Fees (fixed-term only): Fees paid by borrowers during loan funding and refinance operations, deducted from their drawable balance of principal.

2. Service Fees: Fees paid by borrowers during loan payments, added to gross interest.

3. Management Fees: Fees taken as a portion of gross interest paid by Borrowers when payments are made.

All categories of fees are paid to two actors:

1. The Pool Delegate that manages the pool that has funded the Loan.

2. The MapleTreasury contract.

The naming convention for fees in the smart contracts is: actorCategoryType. So for example, delegateManagementFeeRate would refer to the rate (type) that is used to calculate the management fee (category) that will go to the Pool Delegate (actor).

Fixed Term Loans

Origination Fees

Origination fees are paid during Loan funding and refinance operations for fixed-term Loans. Origination fees are calculated in the following way:

• delegateOriginationFee is a loan term that is specified on loan instantiation as a nominal amount (e.g., 1_750 USDC).

• platformOriginationFeeRate is a Governor-settable variable in globals that is settable on a Pool level. When a loan is funded, the origination fee amount to be paid is calculated using the following formula:

$$\large \begin{align} \nonumber platformOriginationFee = platformOriginationFeeRate \times principal \times \frac{loanTermLength}{oneYear} \end{align}$$

Refinancing of Origination Fees

In the case of a refinance, two things happen with regards to origination fees:

1. The delegateOriginationFee amount can be updated by updating the fee terms as a part of the refinance (optionally). If no change is made, the same origination fee is used.

2. The platformOriginationFee is recalculated and saved based on the resulting terms of the refinance operation and the current platformOriginationFeeRate set in globals.

Service Fees

Service fees are paid during loan payments. Service fees are calculated in the following way:

• delegateServiceFee is a loan term that is specified on loan instantiation as a nominal amount (e.g., 100 USDC).

• platformServiceFeeRate is a Governor-settable variable in globals that is settable on a Pool level. When a loan is funded, the service fee amount to be paid is calculated using the following formula:

$$\large \begin{align} \nonumber platformServiceFee = platformServiceFeeRate \times principal \times \frac{paymentIntervalLength}{oneYear} \end{align}$$

Both of these values are saved in mappings in the MapleLoanFeeManager and used for all payments for a loan until it either refinances or matures.

Refinancing of Service Fees

In the case of a refinance, three things happen with regards to service fees:

1. The delegateServiceFee amount can be updated by updating the fee terms as a part of the refinance (optionally). If no change is made, the same service fee is used.

2. The platform service fee is recalculated and saved based on the resulting terms of the refinance operation and the current platformServiceFeeRate set in globals. This is done using the same formula:

$$\large \begin{align} \nonumber platformServiceFee = platformServiceFeeRate \times principal \times \frac{paymentIntervalLength}{oneYear} \end{align}$$

1. The platform and delegate service fee amounts that have accrued between the last payment due date and the refinance are saved in the FeeManager as platformRefinanceServiceFee and delegateRefinanceServiceFee using the following formula:

$$\large \begin{align} \nonumber refinanceServiceFee = serviceFee \times \frac{(timestamp - lastPaymentDueDate)}{paymentInterval} \end{align}$$

Open Term Loans

Service Fees

Service fees are paid during loan payments. Service fees are calculated in the following way:

• delegateServiceFeeRate is a loan term that is specified on loan instantiation as an annualized rate scaled by 1e6 (the HUNDRED_PERCENT constant). It is a rate, not a nominal currency amount (e.g., 100_000 = 10%).

• platformServiceFeeRate is a Governor-settable variable in globals that is settable on a Pool level. When a loan is funded, the service fee amount to be paid is calculated using the following formula for both the delegate and platform service fees:

$$\large \begin{align} \nonumber platformServiceFee = platformServiceFeeRate \times principal \times \frac{Interval}{oneYear} \end{align}$$

$$\large \begin{align} \nonumber delegateServiceFee = delegateServiceFeeRate \times principal \times \frac{Interval}{oneYear} \end{align}$$

Both of these values are saved in storage of the Loan contract and used for all payments for a loan until it either refinances or matures.

Refinancing of Service Fees

In the case of a refinance, three things happen with regards to service fees:

1. The delegateServiceFeeRate can be updated by updating the fee terms as a part of the refinance (optionally). If no change is made, the same service fee is used.

2. The platform service fee is recalculated and saved based on the resulting terms of the refinance operation and the current platformServiceFeeRate set in globals.

Both are done using the same formula:

$$\large \begin{align} \nonumber platformServiceFee = platformServiceFeeRate \times principal \times \frac{Interval}{oneYear} \end{align}$$

$$\large \begin{align} \nonumber delegateServiceFee = delegateServiceFeeRate \times principal \times \frac{Interval}{oneYear} \end{align}$$

1. The platform and delegate service fee amounts that have accrued between the last payment or funding (whichever is greatest) and the refinance are paid during the refinance using the following formula:

$$\large \begin{align} \nonumber refinanceServiceFee = serviceFee \times \frac{(timestamp - \max(datePaid, dateFunded))}{paymentInterval} \end{align}$$

Management Fees

Management fees are paid during loan payments, after a loan's interest has moved out of the loan and into the Pool contracts. Management fees are deducted from gross interest paid by borrowers using the following formula:

$$\large \begin{align} \nonumber managementFee = grossInterest \times managementFeeRate \end{align}$$

The remainder of the interest (net interest) goes to the Liquidity Providers.

Note Management fees are treated the same for both fixed-term and open-term loans.