# Margin and Fee

### Margin Requirements

#### Initial Margin

To ensure commitment and cover potential fees, both parties must provide initial margin:

* **Margin Amount**: 2% of the loan amount converted to USDC value
* **Purpose**: Guarantees trade execution commitment and covers platform fees
* **Timing**: Required when placing orders in the marketplace

#### Margin Calculation

```
Initial Margin = Loan Amount × 2% (converted to USDC)
```

### Transaction Fee Calculation

When orders are successfully matched in Indication Mode, both parties are required to pay platform fees calculated using the following formula:

```
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., 0.03 for 3%)
* **`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 |

### Integrated Margin and Fee Examples

#### Example 1: Short-term Loan with Margin Flow

**Initial Setup:**

* Matched Amount: $100,000 USD
* Interest Rate: 5% per annum
* Duration: 30 days

**Step 1 - Initial Margin Requirements:**

* Lender Initial Margin: $100,000 × 2% = $2,000 USDC
* Borrower Initial Margin: $100,000 × 2% = $2,000 USDC

**Step 2 - Fee Calculations:**

* Lender Fee: $100,000 × 0.05 × 0.005 × 30 / 365 = $2.05 USDC
* Borrower Fee: $100,000 × 0.05 × 0.03 × 30 / 365 = $12.33 USDC

**Step 3 - Margin Refunds (after fee transfer completion):**

* Lender Refund: $2,000 - $2.05 = $1,997.95 USDC
* Borrower Refund: $2,000 - $12.33 = $1,987.67 USDC

#### Example 2: Long-term Loan with Margin Flow

**Initial Setup:**

* Matched Amount: $500,000 USD
* Interest Rate: 8% per annum
* Duration: 180 days

**Step 1 - Initial Margin Requirements:**

* Lender Initial Margin: $500,000 × 2% = $10,000 USDC
* Borrower Initial Margin: $500,000 × 2% = $10,000 USDC

**Step 2 - Fee Calculations:**

* Lender Fee: $500,000 × 0.08 × 0.005 × 180 / 365 = $98.63 USDC
* Borrower Fee: $500,000 × 0.08 × 0.03  × 180 / 365 = $591.78 USDC

**Step 3 - Margin Refunds (after fee transfer completion):**

* Lender Refund: $10,000 - $98.63 = $9,901.37 USDC
* Borrower Refund: $10,000 - $591.78 = $9,408.22 USDC

### Fee Payment Process

#### Step-by-Step Process

1. **Order Matching**: When orders are successfully matched between counterparties
2. **Fee Calculation**: Platform automatically calculates fees based on matched terms
3. **Fee Transfer Requirement**: Users must complete fee transfer transaction to TSI
4. **Margin Refund**: Any unused portion of the margin is returned to the user's wallet **only after successful fee transfer completion**
5. **Fee Confirmation**: Users receive confirmation of fee payment and remaining balance

#### Fee Status Tracking

Users can monitor fee payment status through:

* **Real-time Updates**: Immediate notification of fee calculations and deductions
* **Transfers Section**: Complete history of margin deposits and fee payments
* **Transaction Details**: Detailed breakdown of all fee components
* **Refund Status**: Tracking of margin refunds and processing times


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