Fee Structure

When using Optimex Borrows, three types of fees may apply:

1. Network Fee (Blockchain Transaction Fee)

• What It Covers: Cost for processing blockchain transactions.

• Factors Impacting the Fee:

  • Network Congestion: Higher traffic results in increased fees due to competition for block space.

  • Transaction Size: Larger transactions need more block space, leading to higher fees.

• Who Pays It: The borrower pays this fee directly to blockchain miners or validators. Optimex does not receive any part of this fee.

2. Loan Initiation Fee

• What It Covers: Charge for processing every loan disbursement.

• Fee Calculation: 0.1% of the borrowed amount.

• Example:

  • Maximum borrowing power: 100,000 USDC

  • Requested drawdown: 10,000 USDC

  • Loan initiation fee: 0.1% of 10,000 USDC = 10 USDC

  • Total debt: 10,010 USDC (loan amount + fee)

  • Optimex retains the 10 USDC fee. Borrower receives 10,000 USDC and owes 10,010 USDC, with interest on the full amount.

3. Liquidation Fee

• What It Covers: Fee when the loan becomes under-collateralized.

• Fee Calculation: Determined by Morpho's Lending Market based on current Loan-to-Value (LTV) ratio and liquidation threshold.

• Liquidation Process:

  • Entire BTC collateral is sold into USDC.

  • Sale proceeds are used to repay the debt and cover the liquidation fee.

  • Borrower receives any surplus funds in USDC, not BTC.