# Fees & Parameters

Each market is governed by its own set of parameters, which are **fixed** at the time of market deployment. Be aware of this fact and plan accordingly when deploying a new market.

<table><thead><tr><th width="257.796875">Parameter </th><th width="371.59765625">Explanation</th><th>APR</th></tr></thead><tbody><tr><td>Max Open LTV</td><td>The maximum Loan-to-Value ratio to which you can open positions</td><td>50%</td></tr><tr><td>Liquidation LTV</td><td>Loan-to-Value threshold at which a loan will become eligible for liquidation</td><td>75%</td></tr><tr><td>Emergency Liquidation LTV</td><td>Loan-to-Value threshold at which the liquidation penalty will be increased to insure timely liquidation</td><td>80%</td></tr><tr><td>Liquidation Penalty</td><td>Dictates how much of your collateral will be given to the liquidator as an incentive to clear the debt</td><td>10%</td></tr><tr><td>Emergency Liquidation Penalty</td><td>Increased liquidation penalty for highly-distressed positions to incentivise liquidators to clear a positions debt promptly</td><td>15%</td></tr><tr><td>Loan Origination Interest</td><td>A one-time interest payment to SOL LPs at loan origination</td><td>1%</td></tr><tr><td>Min Borrow APR</td><td>Borrow APR at 0% utilization ratio</td><td>15%</td></tr><tr><td>Max Borrow APR</td><td>Borrow APR at 100% utilization ratio</td><td>400%</td></tr><tr><td>Optimal Borrow APR</td><td>Borrow APR at the optimal utilization ratio of 70%</td><td>70%</td></tr><tr><td>Market Creation Fee</td><td>The fee charged by the protocol in order to create an isolated market</td><td>2 SOL</td></tr><tr><td>Swap Fee</td><td>The fee charged to use the swap feature</td><td>0.5%</td></tr><tr><td>Trading Fee (buy)</td><td><p>The fee for opening a Margin Position</p><p>(Leverage is subject to Loan Origination Interest + Loan Origination Fee)</p></td><td>0%</td></tr><tr><td>Trading Fee (sell)</td><td><p>The fee for closing a Margin Position </p><p>Charged only on users' equity, not on the leverage (Sell Amount - Debt)</p></td><td>1%</td></tr><tr><td>Reserve Factor (Borrow APR)</td><td>The protocol share of the borrow APR</td><td>20%</td></tr><tr><td>Reserve Factor (Liquidation)</td><td>The protocol share of the liquidation penalty</td><td>10%</td></tr><tr><td>Reserve Factor (Rewards)</td><td>The protocol share of added reward incentives</td><td>10%</td></tr><tr><td>Loan Origination Fee</td><td>Loan origination fee that goes to the protocol</td><td>1%</td></tr><tr><td>Vault Performance Fee</td><td>The protocol fee charged for net vault earnings</td><td>25%</td></tr><tr><td>Vault Early Exit Tax</td><td>Fee charged for withdrawing funds from the vaults within 350 seconds after deposit </td><td>1%</td></tr></tbody></table>


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