Lombard
  • Unlocking Bitcoin's Potential
    • Introducing Lombard & LBTC
      • Our Value Proposition
      • The State of Bitcoin
      • Lombard's Mission & Vision
  • Lombard's Partners
    • Babylon's Bitcoin Staking
    • Lombard's Security Consortium
  • Bitcoin Staking Partners
  • LBTC: Liquid Bitcoin
    • Introduction to LBTC
    • DeFi Vaults
      • Lombard DeFi Vault
        • LBTC/LBTCv
      • Bitcoin Bera Vault
      • Sentora DeFi Vault
    • Lux & Luminary Program
      • Referral Program
      • Nov. '24 The Golden Bull
      • Dec. '24 Flash Event
    • Staking Yield Distribution
    • Supported Blockchains
    • User Guides
      • Staking BTC & Minting LBTC
      • Unstaking LBTC
      • Lombard DeFi Vault: Depositing & Withdrawing
      • Claiming BABY
      • LBTC Bridging to Sui
  • Technical Documentation
    • Smart Contracts
    • Protocol Fees
    • Protocol Architecture
      • Lombard Ledger (Consortium)
      • CubeSigner: Key Management
      • Bascule Drawbridge
      • LBTC Design
      • Babylon Staking
      • PMM Module
      • Trustless Relayer
    • Oracles
    • Audits & Bug Bounties
    • Sanctions & Risk Monitoring
    • Transaction Tracing
  • Frequently Asked Questions
    • FAQs
      • BABY FAQs
  • Developers
    • Lombard SDK V3
    • SDK FAQ
    • Lombard SDK V2 (deprecated)
  • Quick Links
    • Lombard Website
    • Lombard X (Twitter)
    • Lombard Dune Dashboard
    • Lombard Dune PoR
    • Lombard Discord Server
  • Legals
    • Terms of Service
    • Privacy Policy
    • UK Residents
Powered by GitBook
On this page
  • Staking Fees
  • Performance Fees
  • Unstaking Fees
  • DeFi Vault Management Fees
  1. Technical Documentation

Protocol 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 3–5% 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.

DeFi Vault Management Fees

  • A management fee of 1.5% per annum will be charged on holdings in the Lombard DeFi Vault.

PreviousSmart ContractsNextProtocol Architecture

Last updated 3 months ago