> For the complete documentation index, see [llms.txt](https://docs.lif3.com/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.lif3.com/terrace/fees.md).

# Fees

### **Borrowing**

The Lif3 Protocol charges borrowers and lenders two different fees. Every time a borrower takes out a new loan, there is a fixed, one-time borrow cost of 0.1 percent. The interest rate model also predicts the accruing interest on loaned tokens over time.

The Lif3 Protocol reserves a portion of the costs (now 10%, ranging from 0% to 20%) paid by borrowers to lenders.

### **Lending (Single-Sided)**

Lenders will only pay a 0.5% deposit fee when supplying tokens to an individual lending pool, but they won't have to pay withdrawal fees.

* Deposit fee: 0.5%
* Withdrawal fee: 0%

### **Liquidations**

If their borrow positions are liquidated, borrowers pay liquidators a liquidation incentive (now 4% and ranging from 1% to 5%) on the borrowed amount.

These costs are given to the liquidator as symbols of collateral:

* 4% liquidation incentive