Protocol
Bonds and costs
Tenor takes no fee on loans or interest. Each order posts a bond of 0.5% of its maximum, at least 1 USDC, and Solana rent and network fees apply.
What an order costs#
| Item | Amount | Comes back? |
|---|---|---|
| Bond | 0.5% of the order's maximum, at least 1 USDC | Yes, when the order is claimed or found unfilled. Kept if the order is never revealed, or if a filled loan is never taken. |
| Order account | about 0.0023 SOL of rent | No. The account stays as the order's on-chain record. |
| Order vaults | about 0.0041 SOL of rent | No. Two token accounts owned by the order hold its USDC and collateral. |
| Your token accounts | about 0.002 SOL each, if new | They are yours: note, USDC and wrapped SOL accounts. |
| Network fees | Solana's base and priority fees | No. |
All of a borrower's interest goes to that auction's notes. There is no protocol fee, no origination fee and no fee on redemption.
Forfeited bonds#
A bond is forfeited in two cases:
- An order is never revealed. Its bond goes to the series fee account. The only instruction that moves that account sends the whole balance to the staking vault, where TENOR stakers earn it, and it has no access to collateral, lender capital or note pools.
- A filled borrow order's loan is never taken. Its bond goes to that auction's pool and is paid to the auction's notes, together with the USDC that was reserved for the loan.
Scaling the bond with the order makes holding back a reveal, or walking away from a filled loan, cost in proportion to its size.
Liquidation discount#
A liquidator buys collateral 5% below its conservative value. That discount is the cost of a liquidation to the borrower; it is paid to the liquidator, not to Tenor.