Fees
NFTH charges minimal fees to keep arbitrage efficient while funding protocol operations.
Fee Schedule
| Action | Fee | Recipient |
|---|---|---|
| Mint | 0% | - |
| Random Redeem | 0% | - |
| Targeted Redeem | 5% | 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
5% 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 Changes
Fees are configured at the factory level and can be verified on-chain:
cast call $FACTORY "factoryTargetRedeemFee()" --rpc-url $RPC
# Returns: 50000000000000000 (0.05 ether = 5%)
Once factory ownership is renounced, fees become permanently immutable.
See Tokenomics for how fees fund the protocol.