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Protocol Fees

Dynamic mint/redeem fees for ha and hs, not order-book trading fees. Terms: Glossary.

Fees act like a pressure valve.

Dynamic fees​

Harbor adjusts mint/redeem fees in real time:

  • Normal conditions: low fees (illustrative ~0.25% mint ha, ~1% mint hs; check app quote per market)
  • System stress: fees rise on actions that worsen collateral ratio
  • System needs balance: fees can go to zero or negative (paying users to mint helpful-side tokens)

Tiered structure​

Large txs that cross stress thresholds pay higher fees only on the portion that causes impact.

Feedback loop​

  • Everyone wants ha → minting ha gets expensive; hs cheaper
  • Everyone wants leverage → opposite, cheaper ha, pricier hs
  • Arbitrageurs help rebalance demand

Where fees go​

Per market (with collateral yield = protocol revenue):

  1. Up to ~5% → Maiden Voyage Yield Share (when eligible)
  2. ~95% → treasury take (if TVL threshold met), then 75% pools / 25% buy TIDE

Full waterfall: TIDE Tokenomics.

Integration with stability pools​

Fees steer entry/exit; Stability Pools handle ongoing stress via rebalancing.

For users​

  • Small txs: usually low fees
  • Large txs: pay for stress they add
  • Helpful actions: may earn rebates when the system needs them
  • Always dry-run / quote in the app before confirming