Protocol
Fees
Two fees, both paid out of value the protocol already settled.
Schedule
| Fee | Rate | Paid by | When |
|---|---|---|---|
| Coupon fee | 20% of each coupon | CARRY | Each paid observation |
| Notional fee | 0.60% of matched notional | GUARD | Strike, from prefund |
Where fees go
FeeRouter sends 85% to the buyback auction and 15% to the Treasury, where it backs the floor.
Worked numbers
A 100,000 USDG series at 0.50% paying ten coupons: notional fee 600, coupon fees 10 × 500 × 20% = 1,000. Total 1,600 USDG: 1,360 to buybacks, 240 to Treasury.
Effective cost to each side
CARRY keeps 80% of the gross coupon. GUARD pays the gross coupons plus 0.60% of notional once.
Protocol revenue is not principal
Fees never touch the notional or the stock in escrow.