Protocol Fees

Origination Fee

Echelon charges a one-time origination fee on all new borrow transactions. This fee is applied at the time of borrowing and is added to the user's liability. The origination fee helps sustain protocol operations and contributes to its long-term development, security, and liquidity incentives.

Origination Fee = Borrowed Amount × 0.10% (0.0010) When a user borrows assets on Echelon, the final borrowed balance is slightly higher than the due to the origination fee. For instance, if a user borrows 10,000 USDC from Echelon:

• Origination Fee = 10,000 × 0.0010 = 10 USDC

• The user's total outstanding liability, or borrowed balance = 10,010 USDC

The full 10,010 USDC debt remains outstanding, meaning the borrower must repay the full borrowed amount plus any accrued interest.