Fees
SV3 splits each action fee into protocol revenue, creator revenue, and non-withdrawable floor backing, with rates and defaults detailed per action type.
SV3 calculates each action fee once from its defined gross USDC leg. The fee is then split between protocol revenue, creator revenue, and non-withdrawable floor backing.
Action fees
| Action | Fee |
|---|---|
| Buy | 1.25% |
| Curve sell | 1.25% |
| Explicit floor redemption | 1.25% |
| Advance origination | 3.00% |
| Repayment | 0% |
| Collateral deposit or withdrawal | 0% |
| Surrender | 0% |
| Donation or reserve sync | 0% |
| Floor raise | 0% |
An owner-set USDC market-creation fee goes to protocol revenue and is excluded from market backing.
Offset-short fees
Offset-short charges use separate bases and go to the attached OffsetPerpMarket protocol fee bucket. They do not enter the creator waterfall or floor backing.
| Action | Base | Rate |
|---|---|---|
| Open offset short | Released premium | 0.125%, rounded up |
| Close or restored portion | Actual restore cost | 0.125%, rounded up |
| Carry | Remaining entry restore | 0.03% per day |
| Liquidation bounty limit | Remaining margin | 1%, limited by leftover |
| Surrender residual | Unrestored size | No extra fee |
Carry debits margin only. Released-premium escrow is reserved for restore and close settlement. An underwater surrender pays the close fee only on the size it can actually restore.
See Native Offset Shorts for the position lifecycle and conservative health calculation.
Fee waterfall
At launch, the creator fixes their share of the 85% market-group bucket between 0% and 25%; the default is 10%. Buy, sell, redemption, and advance fee rates stay fixed for every creator setting.
At the default creator selection, the effective split of the gross action fee is:
| Destination | Share of action fee |
|---|---|
| Protocol total | 78.75% |
| Creator | 8.50% |
| Floor backing | 12.75% |
$100 buy or gross sell
| Item | Amount |
|---|---|
| Gross action amount | $100.000000 |
| Total 1.25% fee | $1.250000 |
| Protocol total | $0.984375 |
| Creator | $0.106250 |
| Floor backing | $0.159375 |
For a 100 USDC gross buy, 98.75 USDC traverses the curve and 0.159375 USDC becomes floor surplus. A 100 USDC gross curve sell or floor redemption sends 98.75 USDC to the user before gas and integer rounding.
$100 advance
| Item | Amount |
|---|---|
| Gross debt opened | $100.000000 |
| Total 3% origination fee | $3.000000 |
| Net USDC to user | $97.000000 |
| Protocol total | $2.362500 |
| Creator | $0.255000 |
| Floor backing | $0.382500 |
The position opens with 100 USDC of debt, sends 97 USDC to the user, and charges the 3 USDC fee at origination.
Revenue and backing are different
| Balance | Withdrawable? | Purpose |
|---|---|---|
| Curve reserve | No | Backs the curve's redemption schedule |
| Outstanding advance | No | Reserve paid early against locked collateral |
| Floor-directed fee surplus | No | Funds a later valid floor raise |
| Protocol fee escrow | Yes, to stored recipient | Protocol revenue |
| Creator fee escrow | Yes, to stored recipient | Creator revenue |
The floor receives split dust so that protocol, creator, and floor amounts always sum exactly to the action fee in raw USDC units.
A larger creator share produces more creator revenue and less fee-funded floor backing. The creator selection is fixed when the market is created.