All Alchemix v3 fees are set by on-chain governance and fall into three areas: redemption-based fees for borrowers and transmuters, an early-exit fee for queued assets, and a performance fee on yield generation.
Borrower redemption fee
When the Transmuter converts queued alAssets into vault value, it credits that amount against outstanding loans. At that moment, a small fraction of the repaid debt is routed to the protocol treasury.
The same fee applies whenever collateral is used to reconcile earmarked debt, not only through scheduled Transmuter redemptions. A force-repay (for example, during a self-liquidation) settles earmarked debt with collateral and is charged at this same rate, so the small protocol fees you see on those events are this borrower redemption fee.
- Current Rate: 0.25%
- Effective Cost: Because this is event-based rather than time-based, the cost depends on your starting LTV and the duration of the transmutation.
Effective APR ≈ Fee × (1 year ÷ Transmutation Time) × Starting LTV
Transmuter fees
The Transmuter involves two distinct fee types depending on the user's action:
- Redemption Fee: An optional fee applied when a Transmuter depositor claims their underlying assets.
- Current Rate: 0.00%
- Early Transmutation Fee: A fee applied when a user chooses to withdraw their funds from the Transmuter queue before the transmutation process is complete. This ensures the system remains stable and penalizes short-term "queue hopping."
- Current Rate: 1.00%
MYT performance fee
Each Mix-Yield Token (MYT) vault skims a share of the gross yield generated by its underlying strategies before crediting the remainder to the MYT price. This fee funds strategy maintenance and ongoing protocol development.
- Current Rate: 15.00% (pending final DAO verification)
Current fee schedule
| Chain | Base Asset | Redemption Fee | Transmuter Fee | Early Transmutation Fee | MYT Yield Fee |
|---|---|---|---|---|---|
| Ethereum | ETH | 0.25% | 0.00% | 1.00% | 15.00% |
| Ethereum | USDC | 0.25% | 0.00% | 1.00% | 15.00% |
| Optimism | ETH | 0.25% | 0.00% | 1.00% | 15.00% |
| Optimism | USDC | 0.25% | 0.00% | 1.00% | 15.00% |
| Arbitrum | ETH | 0.25% | 0.00% | 1.00% | 15.00% |
| Arbitrum | USDC | 0.25% | 0.00% | 1.00% | 15.00% |
All parameters are subject to Alchemix DAO oversight. Any updates to the fee schedule are executed on-chain and are visible within the Alchemix UI before taking effect.