# Protocol fees

Honey P2P has 2 protocol fees: 10% of what lenders receive (lending fee) + 1.5% of debt (borrower fee).

{% hint style="info" %} <mark style="color:blue;">**Example of loan on Honey P2P**</mark>\
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**Maia** (lender) and **Barry** (borrower) enter a loan agreement on Honey P2P:\
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Barry requests to borrow 500 USDC for his Honey Genesis Bee NFT for 10 days. He is willing to pay lenders up to 8% interest to fund this loan.\
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Maia accepts Barry's loan request and funds the loan for 500 USDC. \
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10 days later, Barry pays his loan back: 500 USDC + 40 USDC (the 8% interest)
{% endhint %}

## Borrower fees

The protocol collects a 1.5% fee on the debt taken out by borrowers.

Borrower fees ensures that the protocol receives fees regardless of liquidations and default rates.

{% hint style="info" %}
When Barry takes out a loan for 500 USDC, he receives 492.5 USDC of debt and the protocol receives 7.5 USDC.
{% endhint %}

## Lender fees

The protocol collects 10% of the interest accrued to lenders.

{% hint style="info" %}
When Barry pays back 40 USDC of interest, Maia receives 36 USDC and 4 USDC goes to the protocol.
{% endhint %}