Borrow fees

Borrowers pay an interest rate ("borrow fee") on outstanding TRI debt owed to the protocol.

Users who mint TRI accrue borrow fees on outstanding TRI debt. In order to withdraw collateral from the protocol, users must repay accrued borrow fees to close their debt positions.

The borrow fee interest rate is set by governance per each collateral asset accepted on the protocol. For tokenized T-bill collateral, borrow fees target a rate lower than the 3-Month U.S. Treasury Bill rate (i.e. borrow fees for T-bill collateral should always be lower than 3 month T-bill rates).

Fees paid by borrowers are distributed to sTRI stakers (sTRI vault).

Unique properties of Trinity borrow fee

The Trinity protocol updates the outstanding debt value and LTV on each vessel 1x per week.

In effect, borrowers pay weekly interest upfront, at the beginning of each weeklong period.

For more detail on borrow fee dynamics, please see Scenarios: Vessels & Fees.

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