Where the fees go.
Protocol revenue is USDG. It comes from three places: Folio launches and rebalances, F-Pool swaps and LP flows, and a small fee on the volume the Folio router sends to underlying venues.
Those fees leave the product when they are charged. They do not stay inside a Folio vault or an F-Pool book, so they do not inflate a fund’s NAV or an LP’s leverage capacity.
- Sources of protocol revenue
- 3
- Every fee is charged in USDG
USDG- Router fee on the volume Folio sends to venues
- 0.3%
Pick a source and set the volume.
Each source below uses the documentation’s own rates.
All in USDG- Launch, 10% to treasuryTaken once, at launch$100,00097%
- Rebalance fees0.03% per fill, compounding$3,2353%
Into the basket The other 90%, the fund's own stocks. Not revenue$900,000
Launch and rebalance.
Launch: 10% of the raise to the treasury. It is taken once, when the Folio goes live, before the creator’s stocks are bought. On a $100,000 raise, $10,000 goes to the treasury and $90,000 buys the stocks.
Rebalance: 0.03% of the Folio’s value, every time a rebalance fills. It is charged on the whole Folio, not on the slice that traded. A $1,000,000 Folio pays $300 per rebalance, with no yearly cap. If the trade does not fill, the fee is $0. A rebalance only runs when a holding is at least 2% off target, and the contract allows at most one fill a day.
| $1,000,000 Folio, prices flat | Fills | Collected | Left |
|---|---|---|---|
| Monthly | 12 | about $3,590 | $996,410 |
| Weekly | 52 | about $15,480 | $984,520 |
| Daily, the most the contract allows | 365 | about $103,730 | $896,270 |
Each rebalance takes 0.03% of what the fund is worth at that moment, so the next fee is charged on what is left. After n rebalances the protocol has collected 1 − 0.9997ⁿ of the starting value.
Swaps, minting and redeeming.
These are the planned defaults. Exact basis points are set per market at deploy.
| Action | Fee | Where it goes |
|---|---|---|
| Long or close a long (swap) | 0.50% of the trade | Half to the protocol, half stays with the LPs |
| Add LP (mint) | 0.30% | All to the protocol. The first deposit that opens the pool is free |
| Remove LP (redeem) | 0.30% | Stays with the LPs who remain. Only if the last LP exits does it go to the protocol |
0.3% of what the router trades.
Every spot and perps swap Folio sends through Uniswap v3 or v4, or a lighter venue, pays 0.3% of that swap’s size, taken out of the router proceeds. A $10,000 swap pays $30. A $1,000,000 swap pays $3,000. This is not the pool fee liquidity providers earn. It is only the volume that comes through the Folio router.
Where the USDG goes.
The protocol’s share of every fee above is collected in USDG and goes to the protocol treasury. The treasury pays for running the protocol and seeds the USDG backing that F-Pool books start with, so a new market can open with depth behind it.