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×365DepochSFepoch=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:

Result

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

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