> For the complete documentation index, see [llms.txt](https://ascend-fi.gitbook.io/ascend_fi/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://ascend-fi.gitbook.io/ascend_fi/protocol/protocol-fees.md).

# Protocol Fees

The Ascend Finance protocol is designed with flexibility and adaptability at its core, allowing it to accommodate the varying needs of its users. While there is no interest charged on debt, the protocol does include two types of fees:

* Minting fees
* Redemption fees

The aim of these fees is to help to maintain the stability and liquidity of the protocol while also providing an incentive for user participation.

Both minting fees and redemption fees can be adjusted by the governance. This means that the community can vote on the parameters of these fees for each collateral type, allowing the protocol to adapt to changing market conditions and ensuring that it continues to offer competitive rates for its users.

## Minting Fee

Minting fees are one-time fee charged at the moment of borrowing.

Every time`GREEN` is drawn from an vault, a minting fee is charged on the drawn amount and added to the debt. Please note that the minting fee is variable (and determined algorithmically), with a minimum value of `0.5%` under normal operation. The fee is `0%` during `Recovery Mode`.

## Redemption Fee

Redemptions are transactions where users can exchange their`GREEN` for a collateral of their choice at face value, subject to a fee known as the Redemption Fee. The purpose of this fee is to protect the system during periods of low collateral ratio by disincentivizing redemptions and ensuring the system remains solvent.


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