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:
Swapping any token to USX via AMM
0% (from USX.Capital)
You only pay AMM pool fees
Redeeming USDC (USX → USDC)
0%
Institutional partners only, email
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 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.
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 fee for direct redemption (0%), but this path is available for institutional partners only. Regular users can swap USX → USDC via Scroll Swap where standard DEX fees apply.
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.
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.
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