Fees

flow.lease uses a simple and fully on-chain fee model designed to discourage short-term deposits and ensure fair reward distribution.

Fee Components

1. Liquidity Provider Deposit Fee

• When users deposit WAVES into the protocol and receive fWAVES tokens, a small protocol fee is deducted.

• The deducted fee portion is transferred directly to the protocol’s fee collector address.

• The remaining amount is fully converted into fWAVES and provided to the user.

Formula:

fWAVES minted = WAVES deposited × (1 - depositFeeBP / 10000)

Example:

• Deposit: 1000 WAVES

• Protocol fee: 0.5% (default 50 basis points)

• fWAVES minted: 1000 × (1 - 50 / 10000) = 995 fWAVES

• 5 WAVES (0.5%) are collected as the protocol fee.

2. No Performance or Withdrawal Fees

• The protocol does not charge any performance fees on validator rewards.

• There are no fees charged during the withdrawal phase (users receive their full WAVES and accumulated rewards according to the exchange rate at withdrawal time).

3. Administrative Fee (Configurable)

• The administrative deposit fee (adminFeeBP) is configured at protocol deployment.

• Current default value: 50 BP (0.5%).

• Fee adjustments require multisignature governance approval (admin multisig).

• All fee changes are fully transparent and recorded on-chain.

4. Emergency Slashing and Penalties

• In case of emergency validator slashing, penalized validators lose their locked FLOW deposit entirely.

• Slashed FLOW is permanently burned and does not return to protocol revenue.

5. Gas and Network Fees

• Users are responsible for covering Waves network transaction fees when submitting smart contract calls.

• These are native blockchain fees unrelated to protocol-level fees and depend on network conditions.

Fee Flow Summary

Action	Fee Charged	Recipient
Deposit WAVES	Admin deposit fee	Protocol treasury (fee collector address)
Withdraw WAVES	No fee	User
Validator Registration	No fee (requires FLOW stake)	—
Voting (FLOW locking)	No fee	—
Emergency Voting	No fee	—
Emergency Slashing	FLOW burn (validator penalty)	Protocol burn

Transparency

• All fee collection, storage, and usage are fully on-chain and publicly auditable.

• fWAVES price growth automatically reflects validator performance, reward compounding, and leasing efficiency, without hidden fees or off-chain revenue capture.