Skip to main content

Explanation of Lending Fees

Understand the fees involved when lending or borrowing NFTs on JPG Store.

Updated this week

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

A flowchart showing the NFT lending process on JPG Store, where users can either create a lending offer or a borrow request. The flow includes refundable deposits, loan acceptance, loan in progress, and ends with either the loan being repaid and the NFT returned, or the loan defaulting and the lender claiming the NFT.

What’s Next?

To further understand fees and the lending process on JPG Store, explore the following articles:

Did this answer your question?