Fees

This section outlines all the fees associated with utilizing the Lombard protocol. Understanding these fees is crucial for users to manage their interactions with the platform.

Staking Fees

• On chains where network fess are higher, such as Ethereum, users authorize a small network fee in LBTC. This fee is deducted when Lombard Protocol relays a transaction to mint LBTC, and is a contribution towards the network gas fee paid by Lombard Protocol.

  • In the unlikely event where Lombard Protocol does not mint LBTC, the user may do this themselves, paying the associated network gas fee. In this scenario, there are no fees deducted by Lombard Protocol.

Performance Fees

• Lombard delegates BTC stakes to Finality Providers (validators) who take a 8% commission on all rewards.

Unstaking Fees

A fixed 0.0001 LBTC unstaking fee applies, called the Network Security Fee. This fee is the minimum amount:

• to contribute to Bitcoin network fees paid by Lombard; and,

• to secure Lombard by setting the economic cost of denial-of-service attacks to be prohibitive.