# Stability Fee

The Stability Fee is a governance-defined cost applied each epoch to participants who delegate $YODL to Operators.\
It compensates for time-based exposure created by operator execution credit usage and helps maintain protocol solvency by providing continuous protection against unrealized deficits.

Base Rate:  Fixed by governance (e.g., 12% per annum).

Application:  Charged upfront on delegated $YODL at the start of each epoch.

Scope:  Applies only to participants who delegate $YODL, not Operators.

**Formula:**

$$
SFepoch=PcreditLine×Rbase×365Depoch
$$

Where:

* SFₑₚₒcₕ = Stability Fee charged for the epoch
* P₍creditLine₎ = Total execution credit enabled
* R₍base₎ = Governance-defined yearly Stability Fee rate
* D₍epoch₎ = Epoch duration in days

Example  

For a $10,000 execution credit line, 12% Stability Fee, and a 30-day epoch:

$$
SFepoch=10,000×0.12×30/365=$98.63
$$

Result  

The Stability Fee is deducted once per epoch, preventing deficit carryover and ensuring Curator capital remains fully restored across execution cycles.