Protocol Fees

Textile protocol charges the following fees:

• Deposit – 0%
• Interest Repayment – 10%

Fee Distribution

All fees rotate directly into an AMM (Automated Market Maker), with a single-side buy position at 15% discount.

Example

A user deposits $100 into a pool and receives 100 debt tokens in return.

1. $1 protocol fee is taken and staked into an AMM
2. Anyone can now sell 1 debt token in return for $0.85 immediately When that happens, the position is immediately moved to a redeem request

This mechanism provides immediate liquidity for debt token holders while maintaining protocol sustainability.