Fees
Every fee in the protocol — what you pay, where it goes, and why.
Yield Forge has a simple fee structure. Here's everything you need to know.
No Fees on Minting or Redeeming
Depositing liquidity (minting PT + YT) and redeeming PT at maturity cost zero protocol fees. You only pay standard gas fees.
Yield Fee — 5%
When swap fees are harvested from the underlying pool, the protocol takes a 5% cut. The remaining 95% goes to YT holders.
| Amount | |
|---|---|
| Pool generates | 100 USDT in fees |
| Protocol keeps | 5 USDT (5%) |
| YT holders receive | 95 USDT (95%) |
This fee is immutable — it's hardcoded at 500 bps in ProtocolFees.sol and cannot be changed.
Swap Fees — 0.10% to 0.50%
Trading PT on the secondary market incurs a swap fee that scales with time:
| Time in Cycle | Fee Rate |
|---|---|
| Early (far from maturity) | 0.10% (10 bps) |
| Mid-cycle | ~0.20-0.30% |
| Near maturity | 0.50% (50 bps) |
The fee increases quadratically as maturity approaches. This compensates LPs for higher impermanent loss risk near the end of a cycle.
Fee Split
| Recipient | Share |
|---|---|
| Liquidity Providers (LPs) | 80% |
| Protocol treasury | 20% |
YT Orderbook Fee — 0.30%
When a YT order is filled, the taker pays a 0.30% fee (30 bps). Makers pay nothing.
Summary
| Fee Type | Rate | Who Pays | Mutable? |
|---|---|---|---|
| Mint/Redeem | 0% | N/A | N/A |
| Yield fee | 5% | Harvested from pool | No (immutable) |
| PT swap fee | 0.10%-0.50% | Swapper | No (immutable) |
| YT taker fee | 0.30% | Order taker | No (immutable) |
!NOTE All fee parameters are hardcoded in the smart contracts. The protocol team cannot change fee rates — ever. The only configurable aspect is the fee recipient address, which requires a 48-hour timelock to change.