> ## Documentation Index
> Fetch the complete documentation index at: https://docs.jup.ag/llms.txt
> Use this file to discover all available pages before exploring further.

# Fees & Costs

> Fee structure, referral program, and how costs are distributed on Offerbook

Offerbook is a peer-to-peer lending protocol on Solana where users borrow or lend USDC against onchain collateral. This page covers the protocol fees charged at each stage of a loan, the Solana network fees and account rent, and the referral program.

Costs on Offerbook fall into three types: network fees (Solana gas), account rent (a refundable deposit), and protocol fees (Offerbook's cut). These are explained in detail below.

Protocol fees are set in the onchain configuration and can be updated by protocol admins. The rates described below are the current defaults.

***

## Protocol Fees

These are Offerbook's cut, taken in the loan token (USDC). They apply at three stages of a loan.

<Steps>
  <Step title="At loan start — 25% of estimated interest (paid by the borrower)">
    When a loan is opened (an offer is accepted), the program estimates the total interest for the full loan term. A fee equal to 25% of that estimated interest is taken immediately, paid in USDC by the borrower.

    How this works in practice:

    * If a lender fills a borrow offer: the borrower receives the USDC amount minus the fee.
    * If a borrower fills a lend offer: the borrower pays the fee right after receiving the USDC.

    The interest is calculated based on the APR (Annual Percentage Rate) or APY (Annual Percentage Yield) defined at offer creation, applied to the full loan duration.
  </Step>

  <Step title="At repayment — 10% of interest (paid by the lender)">
    When the borrower repays the loan, the borrower pays the full interest to the lender. A fee equal to 10% of the interest is then deducted from the lender's return.

    Example: On a 100 USDC loan with 1% interest (1 USDC), the lender receives 0.9 USDC in interest. The remaining 0.1 USDC goes to the protocol.
  </Step>

  <Step title="At collateral transfer — 0.1% of collateral (paid by the lender)">
    If the loan is not repaid after maturity and the lender claims the collateral, a 0.1% fee is deducted from the collateral before it is transferred to the lender.

    No fee is charged on collateral transfers involving NFT or RWA collateral.
  </Step>
</Steps>

***

## Effective APR / APY

The interface displays the Effective APR (borrower side) and Effective APY (lender side) in the offer summary. These rates account for platform fees automatically.

Effective APR is higher than the offer APR because the 25% upfront fee is added on top of the interest the borrower owes.

*Example:* an offer at 30% APR becomes 37.5% Effective APR (30% × 1.25).

Effective APY is lower than the offer APY because the 10% fee is deducted from the interest received by the lender.

*Example:* an offer at 5% APY becomes 4.5% Effective APY (5% × 0.9).

### How rates appear in the interface

The borrowing flow prices the upfront fee directly into the displayed rate: the APR shown is all-in (offer APR × 1.25), and the breakdown line expresses the split in APR points. An offer at 16% APR displays as a 20% all-in APR, with the line "Lender keeps 16% · 4% protocol fee": 16% is the offer rate earned by the lender (gross), and 4 points is the 25% upfront fee.

On the lending side, the offer summary shows the Effective APY (offer APY × 0.9) with the note "Includes a 10% platform fee on interest, deducted from your return at repayment": an offer at 16% APY shows a 14.4% Effective APY.

***

## Interest Calculation

Interest is pro-rated from the annual rate over the loan duration:

**Interest = principal × APR × (loan duration in days / 365)**

*Example:* borrowing 8,000 USDC at 35% APR for 3 days costs 8,000 × 0.35 × 3/365 ≈ 23 USDC of interest. The 25% upfront fee is computed on this estimated interest (≈ 5.75 USDC).

***

## Interest on Early Repayment

Borrowers can repay at any time before maturity, but the **full interest for the agreed loan duration is always owed**. There is no partial interest or fee reduction for early repayment.

***

## Intents

Intents are off-chain and entirely free. Posting, editing and cancelling an intent require only a wallet signature: no network fees, no account rent, no protocol fees. Standard fees apply only if a matching offer is filled and becomes a loan. See [Intents](/user-docs/earn/offerbook/intents).

***

## Fee Summary

| Stage               | Who pays                                   | Fee  | Basis                                |
| ------------------- | ------------------------------------------ | ---- | ------------------------------------ |
| Loan start          | Borrower                                   | 25%  | Estimated total interest (USDC)      |
| Repayment           | Lender (deducted from interest received)   | 10%  | Interest (USDC)                      |
| Collateral transfer | Lender (deducted from collateral received) | 0.1% | Collateral value (no fee on NFT/RWA) |

***

## Understanding the Three Cost Types

It helps to separate the three different things you pay for on Offerbook. They behave differently: two are gone for good, one comes back to you.

<CardGroup cols={3}>
  <Card title="Network fee" icon="bolt">
    The Solana "gas" fee, paid on every transaction. Tiny (around 0.000005 SOL per signature). Never refunded.
  </Card>

  <Card title="Account rent" icon="vault">
    A deposit, not a fee. Solana requires you to fund any new account you create. Most of it is refunded when the account is later closed (see table below).
  </Card>

  <Card title="Protocol fee" icon="building-columns">
    Offerbook's cut, taken in the loan token (USDC). Never refunded (a share may go to a referrer).
  </Card>
</CardGroup>

<Note>
  Rule of thumb: **fees are gone, rent comes back.** The largest SOL numbers you see when using Offerbook are usually rent (a refundable deposit), not a cost.
</Note>

***

## Account Rent

Account rent is a refundable deposit fixed by account type. The amounts are determined by Solana and do not change.

| Account                        | Rent (SOL) | Paid when                            | Refundable?                                                |
| ------------------------------ | ---------- | ------------------------------------ | ---------------------------------------------------------- |
| **User account**               | 0.00233856 | First time you use Offerbook         | Not currently (expected to change)                         |
| **Escrow account** (per asset) | 0.00203928 | First time you deposit a given asset | Yes — when you withdraw the asset                          |
| **Offer account**              | 0.00940992 | Each time you create an offer        | Yes — when the offer is filled, cancelled, or expires      |
| **Loan account**               | 0.00651456 | When a loan opens                    | Not currently (expected to change)                         |
| **Loan vault**                 | 0.00203928 | When a loan opens                    | Yes — when the loan is repaid or the collateral is claimed |

<Note>
  Your escrow wallet holds a separate escrow account for each different asset you deposit, so borrowers typically open more of them over time than lenders, who generally only need one for USDC.
</Note>

<Warning>
  On a Solana explorer, an account holding collateral can show a large SOL figure. This is not rent. When the collateral is wrapped SOL (wSOL), the wrapped amount sits inside the account, so the figure shown is the small rent plus the collateral itself. The collateral is yours.
</Warning>

***

## Referral Program

Protocol fees can be split into referral rewards: at every stage where a fee is charged, the user paying the fee receives a rebate and their referrer earns a share. The full split, how it applies across a loan, and how to create your share link are covered in [Affiliate & Referrals](/user-docs/earn/offerbook/affiliate-and-referrals).