Fee Breakdown
Fees is the lifeblood of the Reliq economy, it keeps the wheel turning. It's designed in a way where every ounce of fee collected is used to drive value to the economy and its participants in multiple ways.
Whenever somebody uses Reliq to mint, burn, borrow, open a leveraged position, or gets liquidated, the protocol charges a fee as a percentage of the notional. The fee is high compared to other protocols because 85-90% of the fee is directly and indirectly distributed back to the participants of the protocol.
All the fees collected is split 3-ways:
| Category | Share | Details |
|---|---|---|
| Reserve | 70% | Increases the kHYPE backing per reHYPE, raising the exchange rate |
| Incentives | 15% | Bribes, liquidity incentives (e.g., LP rewards on UltraSolid) |
| Treasury | 15% | Operations, audits, infra, long-term development |
It's deeply baked into the protocol where every fee generating action directly routes 70% of the fee to the reserve, and the remaining 30% to a team-owned address. Then, off-chain the team allocates 15% of the fees collected in the wallet to the incentives program, and the remaining 15% to the treasury.
The Bottom Line
More usage → more fees → stronger reserve → higher exchange rate → more usage. Fees are a core reinforcement mechanism of Reliq’s positive feedback loop.