Fees, Penalties & Funds

All fees go into the treasury that backs BAO. The treasury funds are owned by the users who vote on their allocation and use, which can include the buying and burning of BAO. These fees only apply to LP assets and not to the harvesting of the BAO token. Standard Fees: The BAO Protocol takes the following fees on deposit:

• 0.75% deposit fee

The standard withdrawal fees range from:

• 0.1% - 0.5%

They are:

• 0.5% after 5 days but before 2 weeks.

• 0.25% after 2 weeks but before 4 weeks.

• 0.1% after 4 weeks.

Standard withdrawal fees are applied when a user stays in the yield farming for >5 days

Penalty Fees:

The following penalty fees apply:

• 1% fee if a user withdraws under 5 days

• 2% fee if a user withdraws under 3 days.

• 4% fee if a user withdraws under 1 day.

• 8% fee if a user withdraws under 1 hour.

• 25% slashing fee if user withdraws in the same block. (This is to prevent abuse from flash loans)

The penalty fees are designed to be reasonable for users who want to temporarily yield farm, but penalize users who move out of the system rapidly.