Dynamic Fees

4Real Finance is designed to capture the most efficient DeFi Yields in the Solana Ecosystem while securing the long-term sustainability and utility of the protocol.

To strike a good balance between real yield and utility, we have implemented an adaptive fee system on specific events, which distributes the revenue back to the stakers, based on market conditions.

Adaptive Strategy

Dynamic Fees act like a trailing stop, adapting to market conditions and staking behaviour, maintaining yield stability and treasury growth over time.

• During periods of upwards price action

The protocol may temporarily decrease the staking fees on the hard-assets. This counterbalance effect aims to mitigate excessive trading volatility and treasury imbalance towards one or more assets, while rewarding all stakers.

• During periods of downward or stable price action

Protocols fees are re-balanced and/or reduced in order to incentivise more new stakers while maintaining protocol stability with a fair distribution to long-term stakers.

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Protocol Fee policy

• Open staking position: 5%

• Close staking position: max applicable fee 10%

The protocol's goal is to lower the fees to 0%, relying on the upcoming fees generated by 4Real Finance Products and optimized DeFi strategies. Protocol fees are accrued on the principal staked, not on the yield generated.

To understand why 4Real Finance applies fees and how they're distributed see Protocol Revenue