Fees Explained

Complete fee breakdown for USX transactions: minting, redeeming, staking, unstaking, and protocol yield fees. Learn when you pay fees and where the revenue goes

USX.Capital charges fees only on yield generation, not on transactions. A 10% fee applies only when the protocol generates positive yield (no fees if there's no yield). Minting and redeeming USX are free, and all fees are reinvested into protocol stability and the community treasury.

Transaction Fees Breakdown

Here are all fees charged in the USX ecosystem:

Transaction	Fee	When Applied
Swapping any token to USX via AMM	0% (from USX.Capital)	You only pay AMM pool fees
Redeeming USDC (USX → USDC)	0%	Always free
Staking USX (USX → sUSX)	0%	Always free
Unstaking sUSX (sUSX → USX)	0.05%	Always applied
Protocol yield fee	10%	Only on positive yield

Key point: The only fees you pay regularly are unstaking (0.05%) and the 10% yield fee when strategies are profitable.

Protocol Yield Fee (10%)

This fee applies only when yield is generated.

When Do You Pay It?

• Only on positive yield: If strategies lose money or generate 0% returns, you pay 0% protocol fee

• On accrued yield: When yield accrues and increases the value of sUSX

• Automatically deducted: Fee is taken from yield before distribution (you see the net amount)

What Happens to the 10% Fee?

Of every 10% fee collected:

• 5% goes to the reserve fund for protocol stability and insurance coverage

• 5% goes to the warchest for governance and operational costs

Fee Scenarios (Examples)

Scenario 1: Positive Yield

• You stake $1,000 USDC → get USX → stake as sUSX

• Protocol generates 10% yield = $100

• 10% protocol fee on yield = $10

• You receive: $90 in yield

• Protocol receives: $10 (5% to reserve, 5% to warchest)

Scenario 2: No Yield

• Strategies generate 0% returns

• You pay: $0 in fees

• Protocol receives: $0

Scenario 3: Negative Returns

• Strategies lose 5%

• You pay: $0 protocol fee

• Loss covered by: Reserve fund (if necessary)

Scenario 4: Unstaking

• You hold sUSX worth $1,000

• You unstake to USX

• 0.05% unstaking fee = $0.50

• You receive: $999.50 in USX

No Swap Fee Advantage

USX.Capital doesn't charge swap fees. If you exchange tokens for USX through an AMM:

• USX.Capital fee: $0

• You only pay: The standard AMM pool fee (typically 0.05-0.3% depending on the pool)

This is cheaper than many competing stablecoins that charge platform fees on swaps.

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Common Questions

Q: When do I actually pay the 10% protocol fee?

A: Only when strategies generate positive yield. The fee is deducted from your yield earnings, so you see the net amount distributed.

Q: Is there a fee to redeem USDC?

A: No. Redeeming USX for USDC is always free.

Q: Do I pay a fee every time I stake USX for sUSX?

A: No. Staking (USX → sUSX) is always free. You only pay 0.05% when unstaking.

Q: Where does the fee revenue go?

A: 5% goes to the reserve fund (insurance/stability), and 5% goes to the warchest (community governance and operations).

Q: What if strategies are unprofitable?

A: You pay $0 in protocol fees. Losses are covered by the reserve fund if necessary, and the 10% fee only applies on positive returns.

Q: Are there any hidden fees?

A: No. All fees are disclosed in this table. The only exception is AMM swap fees if you swap through an exchange (those go to the DEX exchange, not USX.Capital).

Q: Why a 10% yield fee?

A: 10% is competitive for yield-generating protocols and ensures the protocol can fund the reserve fund (2% minimum insurance), warchest operations, and continuous security improvements.