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

• There is no fee for staking BTC.

• The user pays the gas fee on the destination chain (i.e., Ethereum) to mint LBTC.

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

• Before 1st December 2024, there is no management fee associated with the DeFi Vault.

• After 1st December 2024, a management fee of 1.5% per annum will be charged on holdings in the Lombard DeFi Vault.