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 (deposit) Fee

• Lombard does not charge a fee for staking (depositing) BTC.

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

Staking Performance Fee

• Lombard imposes a 10% performance fee on the Babylon Staking Rewards accrued from the staked BTC, applied after the fee charged by the finality provider on Babylon.

• The performance fee does not apply to Babylon Points; all Babylon Points will be fully passed on to users, after the fee charged by the finality provider on Babylon.

Unstaking (withdrawal) Fee

When a user withdraws BTC, a fixed unstaking fee applies. This fee is calculated based on:

• The average Bitcoin network fee required to transfer BTC to the user's specified address.

• A nominal, minimum amount to prevent the possibility for malicious individuals to attack the protocol.

DeFi Vault Management Fee

• After 1st October, a management fee of 1.5% per annum is charged on holdings in the Lombard DeFi Vault.