> ## Documentation Index
> Fetch the complete documentation index at: https://docs.paystream.finance/llms.txt
> Use this file to discover all available pages before exploring further.

# Fees

> Fee structure for Paystream's Leveraged Liquidity Provisioning (LLP) system.

Paystream incorporates a transparent and modular fee system designed to fairly compensate the protocol, ensure long-term sustainability, and support risk management, all while maintaining competitive costs for users.

## Fees on LLP-Lenders

### Withdrawal Fee

A small flat fee is charged when a lender withdraws their funds from the protocol. This fee is based on the total assets withdrawn and only applies at the time of exit.

## Fees on LP users

### Borrow Initiation Fee

A one-time fee is charged when a borrower opens a position to take leverage . This is calculated as a percentage of the borrowed amount.

### Yield-Based Fee (on earned interest)

In certain cases, a minimal fee may be applied to the interest earned by the protocol from borrower activity. This supports long-term sustainability and covers protocol-level risks.

### Liquidation Penalty

In the event of a liquidation, a fixed penalty is applied. This acts as a deterrent to undercollateralized borrowing and helps cover protocol risk.

## Solana Network Fees

### Account Rent for On-Chain Accounts

When a borrower or lender opens a position, Solana requires rent to maintain the on-chain account.
A portion of this rent is refunded to the user upon position closure or repayment.

## LP Position Fees (for Leveraged LP )

### LP Opening Fee (Tiered)

A volume-based fee is applied when a user opens a leveraged LP position. The larger the position, the lower the fee tier. This incentivizes high-volume users while remaining accessible to smaller participants.

### Performance Fee on Earned Yield

When a borrower uses leverage to enter a yield-generating LP position, a small fee is applied to the yield earned, not the borrowed principal. This fee is tiered based on the leverage level used.
No performance fee is charged for unleveraged positions.

### Closing Fee

There is no closing fee when a user exits their LP position. Users can close freely without additional cost.

### Rebalancing Fee

Rebalancing an active LP position incurs a small fee, depending on the speed of execution. Faster rebalances incur higher fees due to on-chain priority costs.