Revenue

There are two types of fees: the Origination Fee and the Protocol Fee

Origination Fee

The Origination Fee is directly sent to Clearpool Treasury when a borrower repay transaction occurs (final repayment including principal) and is charged to the borrower. Origination fee is calculated on the amount raised by the loan, on an annualised year with 360 days and 30 days standard month.

$$originationFeeAmount=originationFeeFactor*blocksInTenure/blocksPerYear*loanAmount$$

• if a loan is repaid via callback, blocksInTenure = blocks elapsed up til the repayment block.

• If a loan is repaid without callback, blocksInTenure = blocks in tenure of the pool

In the event that the loan is rolled, the protocol will charge a smaller origination fee for every roll equal to 10% of the initial Origination Fee. That means that the Origination Fee is applied only on the original tenure set on the pool, and an additional 10% annualized added to the Origination Fee for every roll.

$$rollingOriginationFeeAmount =originationFeeAmount+((rollingIncrement*originationFeeAmount)*(blocksElapsed/blocksInTenure))$$

Protocol Fee

Protocol Fee is a governance approved percentage of pool interest which is diverted to the protocol treasury at the time of maturity/repayment. The fee is applied only once the “repay” transaction is initiated by a borrower. Penalty interest will start accruing immediately after missing the date and time of repayment. However, accrued penalty interest is not subject to interest rate spread charges.

$$ProtocolFee=FeeFactor*( loanAmount* borrowAPR*blocksElapsed/blocksPerYear)$$