# Protocol Fees

Moar Market applies protocol-level fees at various stages of borrower and liquidator interaction. These fees are used to support sustainable protocol operations and incentivize third-party actors like liquidators.

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### 🟢 Origination Fees

There are **no origination fees** charged currently.

> If enabled in the future, origination fees would be applied as a percentage of the borrowed amount and configured per isolated pool.

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### 🟠 Interest Rate Spread

Moar charges a **continuous protocol fee** on the interest earned by lenders. This is defined as a spread between:

* The **borrower’s interest rate**
* The **lender’s supply APY**

The difference (configured via `fee_on_interest`) is retained by the protocol. It is deducted from gross borrower interest before distribution to lenders.

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### 🔴 Liquidation Fees

When a Credit Account is liquidated, a **liquidation bonus** is applied — allowing the liquidator to seize collateral worth slightly more than the debt repaid.

This bonus is:

* **Paid by the borrower** via seized assets
* **Split between the liquidator and the protocol**, depending on pool configuration

This ensures that:

* Liquidators are properly incentivized
* The protocol captures value from managing risk

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