Entry Fee

The Entry Fee is a one-time fee charged when users take out a loan on Liqfinity. This fee is deducted from the loan amount upfront and varies based on the user’s tier, rewarding more active or loyal users with lower fees.

Entry Fee Structure by Tier:

• Basic: 3%

• Plus: 2%

• Premium: 1.5%

• Platinum: 1%

Example:

• If a Basic user takes a loan of $1,000, the entry fee is 3%. The fee is calculated as:

  • $1,000 * 3% = $30

  • The user will receive $970 ($1,000 - $30) after the entry fee is deducted.

• If a Platinum user takes the same loan of $1,000, their entry fee is 1%, so:

  • $1,000 * 1% = $10

  • The Platinum user will receive $990 after the entry fee is deducted.

Even if a user receives only $970 after the entry fee is deducted, they are still responsible for repaying the full loan amount of $1,000 plus any fees generated over time. The Entry Fee is just one aspect of the Liqfinity tier structure.

Higher tiers also offer benefits such as lower Hourly Fee Taxes and increased borrowing limits, providing a more cost-effective and flexible borrowing experience.