JPG Store lending fees
When participating in NFT lending on JPG Store, both lenders and borrowers incur a 1% platform fee:
Borrower: Pays 1% of the loan amount upon accepting the loan.
Lender: Pays 1% of the loan amount when the loan is repaid.
These fees are automatically deducted during the respective transactions.
Cardano transaction fees
In addition to platform fees, standard Cardano network transaction (TX) fees apply. These typically range from 0.3 to 0.4 ADA per transaction, depending on the complexity and size of the transaction.
Minimum UTxO (minUTxO) fees
The Cardano blockchain requires a minimum ADA amount, known as minUTxO, to be attached to outputs in transactions. In the context of lending:
Borrower: May be required to deposit approximately 1.8 ADA.
Lender: May be required to deposit approximately 3.5 ADA.
These amounts are held as part of the transaction to meet network requirements and are refunded upon loan repayment, default, or cancellation, minus any applicable JPG Store fees.
Why is a refundable deposit required?
The refundable deposit ensures compliance with Cardano's minimum UTxO requirements. It allows the smart contract to securely hold all necessary assets and data throughout the loan duration.
A visual breakdown of lending fees
What’s Next?
To further understand fees and the lending process on JPG Store, explore the following articles:
