# Transaction Fee

### Transaction Fee Calculation <a href="#transaction-fee-calculation" id="transaction-fee-calculation"></a>

When orders are successfully matched in Indication Market, both parties are required to pay platform fees calculated using the following formula:&#x20;

```
Transaction Fee = matchedAmount × matchedInterestRate × feeRate × days / 365
```

**Fee Parameters**

* **`matchedAmount`**: The final matched loan amount in the transaction
* **`matchedInterestRate`**: The agreed annual interest rate (expressed as decimal, e.g., 0.05 for 5%)
* **`feeRate`**: Platform fee rate that differs by role
* **`days`**: Number of days from transaction date to maturity date

**Fee Rates by Role**

| Role         | Fee Rate | Description                       |
| ------------ | -------- | --------------------------------- |
| **Lender**   | 0.5%     | Applied to lending transactions   |
| **Borrower** | 3%       | Applied to borrowing transactions |

### **Minimum Fee Formula**

TSI imposes a minimum transaction fee to cover rollup and data availability costs. This minimum fee is calculated as:

&#x20;  `minFeeAmount = fee * ethPrice / targetPrice`

For example, if the minimum fee is 0.0007 ETH, the ETH price is 3000 USD, and the USDC price is 1 USD, the minimum fee in USDC would be: 0.0007 ETH \* 3000 USD / 1 USD = 2.1 USDC.

Different order types have different minimum fees:

* Lend order: 0.0007 ETH
* Borrow order: 0.006 ETH

### **Fee Calculation and Payment**

* The exact fee percentage for both borrowers and lenders is determined dynamically based on market conditions and other factors.
* The transaction fee is automatically calculated and deducted from the loan transfer after the orders are matched. This means the borrower receives the loan amount minus the borrower's transaction fee. In a separate transaction, the lender pays both their own and the borrower's transaction fees to TSI.
* Users can view the details of the transaction fees in their transaction history.


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