Fee schedule

This page summarizes the costs of using Merum. Exact percentage values are confirmed at mainnet launch; the on-chain configuration is authoritative.

Borrow interest

Borrowers pay a fixed 7.9% APR on outstanding USDC debt. Interest accrues continuously and is added to the debt balance — there is no separate origination fee and no fixed term. You can repay in full or in part at any time with no prepayment penalty.

Supplier yield and protocol reserve

Interest paid by borrowers is split between:

• Suppliers — the majority share, distributed as the variable supply APY (approximately 5–7%, depending on utilization).
• Protocol reserve — a reserve factor, retained by the protocol to build a buffer against bad debt and to fund operations.

The exact reserve factor is published at launch. Because the supplier share depends on utilization, the live supply APY is reported by the API rather than fixed here.

Liquidation bonus

When a position is liquidated, the liquidator receives the seized collateral at a discount — the liquidation bonus. This bonus is a cost borne by the liquidated borrower and an incentive paid to liquidators for keeping the protocol solvent. The exact bonus percentage is published under Risk parameters at launch. See Liquidations for the full mechanism.

Network fees

All on-chain actions — depositing, borrowing, repaying, supplying, and withdrawing — require a HyperEVM transaction fee (gas), paid in the network's gas token. This fee goes to the network, not to Merum.