Fees
NFTH is designed as a public good with minimal fees.
Fee Schedule
| Action | Fee | Recipient |
|---|---|---|
| Mint | 0% | - |
| Random Redeem | 0% | - |
| Targeted Redeem | 1% | Protocol |
Why These Fees?
Free Minting
Zero mint fees encourage users to deposit NFTs, increasing vault liquidity. More liquidity means:
- Better price discovery
- Deeper DEX pools
- More DeFi integrations
Free Random Redeem
Random redeems are free because you have no control over which NFT you receive. This enables efficient floor-price arbitrage:
- Buy vTokens below floor price on DEX
- Random redeem for NFT
- Sell NFT at floor price
- Profit keeps DEX price anchored to floor
1% Targeted Redeem
The targeted redeem fee compensates for option value. When you choose a specific NFT:
- You're exercising the option to acquire that specific piece
- Rare NFTs have value above floor
- Fee captures some of this premium
Fee Distribution
All fees go to the protocol treasury, which funds:
- Protocol development
- Security audits
- Infrastructure costs
- Future governance rewards
Fee Changes
The fee recipient can be changed by the protocol owner. However:
- Fee percentages are hardcoded in contracts
- Cannot be changed after deployment
- Ensures user trust and predictability