# Revenue Streams&#x20;

Paydax generates revenue through transparent and minimal fees, ensuring sustainability&#x20;without relying on hidden costs:

* **Loan Origination Fees:** 0.5% on loan creation
* **Interest Spread:** 2–3% spread between borrower interest rates and lender yields
* **Liquidation Penalties:** 5% penalty on liquidated positions
* **Trading Fees:** 0.3% on protocol-owned liquidity

