Fees and routing

A market sends every fee it charges to its fee treasury, a SplitterTreasury_v1 contract that divides each payment between elevation and a list of recipients in the same transaction. The buy fee, sell fee, origination fee and LTV are parameters of a market. Their values set the cost of trading and borrowing and the amount of fee the market collects. The splitter’s settings decide how much of that fee goes to recipients and how much goes to elevation, which raises the reference price.

Fees a market charges

Fee	Charged on	Unit	Rounding	Sent to	Explained in
Buy fee	The deposit of each buy	bps	Down. A non-zero rate whose fee rounds to 0 reverts the trade	Market fee treasury	Markets and curves
Sell fee	The collateral released by each sell	bps	Down. A non-zero rate whose fee rounds to 0 reverts the trade	Market fee treasury	Markets and curves
Origination fee	The amount of each loan	bps	Up	Market fee treasury	Origination fee below
Staking performance fee	Yield harvested from a staking strategy	bps	Up	Market fee treasury	Staking
Early-access fee	The deposit of each early-access purchase	bps, times a multiplier	Down	Early-access fee treasury	Early access

The code calls the origination fee the borrowing fee (setBorrowingFeeRate, getBorrowingFeeRate). This page uses “origination fee” for the same parameter. One further payment reaches the market fee treasury. When a sell takes supply to 0 and the reserve manager records no outstanding draws, the market sends any collateral left on the curve contract to the fee treasury (Markets and curves).

The fee treasury address

The factory creates the market fee treasury when it creates the market (ReferenceCurveFactory_v1). It passes the same address to the curve and to every module it creates with the market, including the credit facility and the staking manager. Each contract stores the address at initialization (__Module_init). No contract has a function that changes it. Every fee follows the same path. The contract that charges the fee approves the fee treasury for the amount and calls the treasury’s fetchFunds (_sendFeesToTreasury). The treasury pulls the amount and divides it in the same call. The early-access module is attached to the market later, with its own SplitterTreasury_v1 (attachPresaleWithTreasury). Its fee goes to that treasury, not to the market fee treasury. The launch route reverts if the two addresses are the same.

Origination fee

The credit facility charges the origination fee on every loan it opens: borrow, each round of buyAndBorrow, and the collateral released by rebalanceLoan. The fee is taken from the loan amount, and the borrower receives the rest.

\text{fee} = \left\lceil L \cdot \frac{f_{\text{orig}}}{10\,000} \right\rceil, \qquad \text{paid} = L - \text{fee}

where:

$L$ is the loan amount, in collateral
$f_{\text{orig}}$ is the origination fee in basis points (getBorrowingFeeRate)

A loan below

\lceil 10\,000 / f_{\text{orig}} \rceil

of the collateral token’s smallest unit reverts when

f_{\text{orig}}

is above 0. Example. The origination fee is 200 bps (2%) and a borrower takes a loan of 1,000.00 collateral.

Step	Calculation	Result
Fee	1,000.00 × 200 / 10,000, rounded up	20.00
Paid to borrower	1,000.00 − 20.00	980.00
Sent to the fee treasury		20.00
Smallest loan	⌈10,000 / 200⌉	50 smallest units

The loan amount follows from the locked issuance tokens, the reference price and the LTV. Credit and looping explains that calculation.

The split

The splitter holds three settings:

an elevation percentage: a share of each payment, in basis points, that it sends first to the elevation fee address
a list of recipients, each with a share count
an optional elevation treasury share: a destination address (getElevationTreasury) with its own share count, counted together with the recipient shares. In the shares launch mode the destination is the market’s ElevationTreasury_v1

When fetchFunds is called, the splitter pulls the payment, then works out its distributable amount: its whole balance of that token, less any elevation value already pending (see Elevation treasury share payments). It sends the elevation percentage of the distributable amount to the elevation fee address. It divides the rest by share count between the destination of the elevation treasury share and the recipients.

D = B - Q, \qquad E_{\text{cut}} = \left\lfloor D \cdot \frac{e}{10\,000} \right\rfloor, \qquad R = D - E_{\text{cut}}

E_{\text{share}} = \left\lfloor R \cdot \frac{s_E}{S} \right\rfloor, \qquad r_i = \left\lfloor R \cdot \frac{s_i}{S} \right\rfloor, \qquad S = s_E + \sum_i s_i

where:

$B$ is the splitter’s balance of the token after it pulls the payment
$Q$ is the elevation value already pending for that token (getPendingElevationReserved)
$D$ is the distributable amount
$e$ is the elevation percentage in basis points (getElevationFeePercentage)
$E_{\text{cut}}$ is the amount sent to the elevation fee address (getElevationFeeTreasury)
$s_E$ is the share count of the elevation treasury share (getElevationShares), 0 when none is set
$s_i$ is recipient $i$ ‘s share count (getRecipientsAndShares)
$S$ is the total share count (getTotalShares)
$E_{\text{share}}$ is the amount offered to the destination of the elevation treasury share
$r_i$ is the amount sent to recipient $i$

The divisions round down. The remainder,

R - E_{\text{share}} - \sum_i r_i

, stays on the splitter. Because

D

is the whole balance less pending value, that remainder is part of the distributable amount of the next fetchFunds call. A slice that rounds to 0 is not sent. Example. A splitter has an elevation percentage of 500 bps (5%), two recipients A and B with 3 shares and 1 share, and an elevation treasury share of 1 share. Nothing is pending and the splitter holds nothing before a fee of 1,000.00 collateral arrives.

Step	Calculation	Result
Distributable amount $D$	1,000.00 − 0	1,000.00
Elevation percentage $E_{\text{cut}}$	1,000.00 × 500 / 10,000	50.00 to the elevation fee address
Rest $R$	1,000.00 − 50.00	950.00
Total shares $S$	3 + 1 + 1	5
Elevation treasury share $E_{\text{share}}$	950.00 × 1 / 5	190.00
Recipient A	950.00 × 3 / 5	570.00
Recipient B	950.00 × 1 / 5	190.00
Left on the splitter	950.00 − 190.00 − 570.00 − 190.00	0

Of the 1,000.00 fee, 240.00 goes toward elevation (50.00 by the elevation percentage, 190.00 by share) and 760.00 goes to the two recipients. Example with a remainder. The same splitter receives 1,001 of the collateral token’s smallest unit.

Step	Calculation	Result
Elevation percentage	⌊1,001 × 500 / 10,000⌋ = ⌊50.05⌋	50
Rest	1,001 − 50	951
Elevation treasury share	⌊951 × 1 / 5⌋ = ⌊190.2⌋	190
Recipient A	⌊951 × 3 / 5⌋ = ⌊570.6⌋	570
Recipient B	⌊951 × 1 / 5⌋ = ⌊190.2⌋	190
Left on the splitter	951 − 190 − 570 − 190	1

The 1 unit stays on the splitter and is included in the distributable amount of the next call. The two elevation routes move funds differently:

Elevation percentage: the splitter transfers $E_{\text{cut}}$ to the elevation fee address directly.
Elevation treasury share: the splitter records $E_{\text{share}}$ as pending for the share’s destination, approves the destination for its whole pending amount, and calls the destination’s fetchFunds. The destination pulls the amount.

The splitter measures what the destination pulled from the change in its own balance. Anything not pulled stays pending, recorded against that token and that destination address (getPendingElevationPayment). A failed call to the destination does not revert the fee payment. The recipients are paid in the same call either way. Pending value is excluded from the distributable amount of later calls. Each later fetchFunds call offers the current destination its pending amount plus the new slice. Any address can also call retryElevationPayment(token, treasury) to offer a destination its pending amount without a new payment. The call does nothing when nothing is pending.

From the elevation treasury to the curve

ElevationTreasury_v1 holds the collateral it receives. Its fetchFunds only accumulates and does not start an elevation. An elevation happens when an elevation keeper calls the treasury’s elevate. That call passes collateral to the curve’s elevate, which raises the reference price. How the reference price increases covers the conditions on that call and what it does to the curve.

Allocations made after the split

The splitter’s on-chain split consists of the elevation percentage, the recipients and the elevation treasury share. A recipient can send the collateral it receives to any address, including the market’s elevation treasury. The splitter does not record or restrict what a recipient does with that collateral. Any address can transfer collateral to the market’s elevation treasury, and the treasury treats that collateral the same as collateral from the splitter.

Parameters

Parameter	Unit	Set by	Setter	Bounds	Changeable after launch
Buy fee	bps	`ECONOMIC_ADMIN`	`setBuyFee`	0 to 10,000	Yes
Sell fee	bps	`ECONOMIC_ADMIN`	`setSellFee`	0 to 10,000	Yes
Origination fee	bps	Admin (`DEFAULT_ADMIN_ROLE`); no role granted at launch	`setBorrowingFeeRate`	0 to 5,000	Yes
LTV	bps	Admin (`DEFAULT_ADMIN_ROLE`); no role granted at launch	`setLoanToValueRatio`	1 to 9,999	Yes
Staking performance fee	bps	Admin (`DEFAULT_ADMIN_ROLE`); no role granted at launch	`setPerformanceFeeBps`	0 to 10,000	Yes
Early-access fee schedule	bps per entry	`ECONOMIC_ADMIN`	`setBaseCommissionBpsAndPriceBreakpoints`	0 to 9,000 per entry	Only before early access opens. See Early access
Fee treasury	address	Factory, at market creation	—	—	No
Recipients and shares	address, share count	Admin (`DEFAULT_ADMIN_ROLE`); no role granted at launch	`setRecipients`	1 to 36 recipients; no zero address; each share above 0; no duplicate; the destination of the elevation treasury share cannot be a recipient	Yes. Each call replaces the whole list
Elevation percentage	bps	Admin (`DEFAULT_ADMIN_ROLE`); no role granted at launch	`setElevationFeePercentage`	0 to 10,000	Yes
Elevation fee address	address	Admin (`DEFAULT_ADMIN_ROLE`); no role granted at launch	`setElevationFeeTreasury`	Not the zero address	Yes
Elevation treasury share (destination and share count)	address, share count	Admin (`DEFAULT_ADMIN_ROLE`); no role granted at launch	`setElevation`	An address with code; not the splitter; not a recipient; share above 0	Yes. The share cannot return to 0

Each splitter’s first recipients, shares, elevation percentage and elevation fee address come from its initialization data. The launch route checks them against the launch configuration before it hands the admin role over. DEFAULT_ADMIN_ROLE can call every setter on this page. Authority lists every role.

Scenarios

Elevation at launch

The launch route wires elevation on both splitters, the market fee treasury and the early-access fee treasury, in one of two modes set by the launch configuration (elevationMode).

Mode	Splitter state after launch	What reaches the market’s `ElevationTreasury_v1`
`shares`	The elevation treasury share is set, with the market’s `ElevationTreasury_v1` as destination and a share count above 0	$E_{\text{share}}$ of each payment, by pull
`pre-split`	The elevation fee address is the market’s `ElevationTreasury_v1`. The elevation percentage is 0 and no elevation treasury share is set	Nothing, until the admin raises the elevation percentage. Then $E_{\text{cut}}$ of each payment, by direct transfer

Situation	What the splitter does
The destination pulls the full amount	Pending for that destination returns to 0
The destination’s `fetchFunds` reverts	The amount stays pending. Recipients are paid. The fee-paying transaction completes
The destination pulls less than offered	The unpaid part stays pending
The admin sets a new destination with `setElevation`	New slices go to the new address. Value pending for the old address stays recorded against it and can be paid only to it, through `retryElevationPayment`

Edge cases

Fee treasury fixed. No contract has a setter for its fee treasury address.
Elevation share cannot be removed. setElevation reverts for a share of 0, so after an elevation treasury share is set, its share count can change but cannot return to 0.
Pending value destination. Pending value moves only to the address it was recorded for. If that destination never pulls, the value stays reserved on the splitter.
Direct transfers. Collateral sent to a splitter without fetchFunds is part of the distributable amount of the next fetchFunds call.
Who can call fetchFunds. Any address can call it. It reverts while the market is frozen and for a zero token address or a zero amount.
Recipient list. setRecipients reverts for an empty list, more than 36 recipients, mismatched array lengths, a zero address, a zero share, a duplicate, or the address of the elevation treasury share’s destination.
Elevation treasury share. setElevation reverts for the zero address, an address without code, the splitter itself, or an address that is a recipient.
Small loans. With an origination fee above 0, a loan below ⌈10,000 / rate⌉ smallest units reverts. Inside buyAndBorrow, a round whose loan fee would round to 0 ends the loop instead.
LTV of 100%. setLoanToValueRatio reverts at 10,000 bps and above, and at 0.

Code

Function	File
`__Module_init`, `feeTreasury`	Module_v2.sol#L185-L243
`_sendFeesToTreasury`	Module_v2.sol#L335-L340
`_deployAndInitCore` (fee treasury creation)	ReferenceCurveFactory_v1.sol#L574-L661
`_attachTreasuryAndPresale`	ReferenceCurveFactory_v1.sol#L1451-L1525
`setBuyFee`, `_validateProjectFee`	IssuanceBase_v2.sol#L243-L245, #L440-L444
`setSellFee`	RedeemingIssuanceBase_v2.sol#L188-L190
Terminal leftover to the fee treasury	ReferenceCurve_v1.sol#L1012-L1025
`rebalanceLoan` (fee on released collateral)	CreditFacility_v1.sol#L510-L565
`setLoanToValueRatio`, `setBorrowingFeeRate`	CreditFacility_v1.sol#L604-L624
`_setLoanToValueRatio`, `_setBorrowingFeeRate`	CreditFacility_v1.sol#L653-L701
`_borrow` (fee and minimum loan)	CreditFacility_v1.sol#L724-L784
`_routeFeeAndPayout`	CreditFacility_v1.sol#L1091-L1107
`setPerformanceFeeBps`	StakingManager_v1.sol#L684-L693
`_harvestYield` (performance fee)	StakingManager_v1.sol#L775-L828
`fetchFunds`, `_distributeRecipients`	SplitterTreasury_v1.sol#L321-L375
`retryElevationPayment`, `_queueCurrentElevationPayment`	SplitterTreasury_v1.sol#L385-L428
`setRecipients`, `setElevationFeePercentage`, `setElevationFeeTreasury`, `setElevation`	SplitterTreasury_v1.sol#L434-L475
`_setElevationFeePercentage`, `_setElevation`	SplitterTreasury_v1.sol#L487-L558
`_attemptElevationPayment`	SplitterTreasury_v1.sol#L568-L635
`_setRecipients`, `_addRecipient`, `_validateRecipientCount`	SplitterTreasury_v1.sol#L730-L814
`ISplitterTreasuryPending_v1`	ISplitterTreasuryPending_v1.sol
`fetchFunds` (accumulate only)	BaseTreasury_v1.sol#L72-L82
`ElevationTreasury_v1.elevate`	ElevationTreasury_v1.sol#L140-L230
`ReferenceCurve_v1.elevate`	ReferenceCurve_v1.sol#L742-L790
`_attachPresale` (separate early-access fee treasury)	LaunchMarket.s.sol#L767-L842
`_configureElevation`	LaunchMarket.s.sol#L846-L879
`_requireSplitOf`	LaunchMarket.s.sol#L1650-L1687
`_requireElevationShape`	LaunchMarketPlan_v1.s.sol#L362-L382
Launch permissions	LaunchPermissionSets_v1.sol

_{Source: house-markets/contracts at 0ebbc89a (branch integration/v12-post-qa).}

Overview

How it works

Deployments

Reference

Fees and routing

Fees a market charges

The fee treasury address

Origination fee

The split

From the elevation treasury to the curve

Allocations made after the split

Parameters

Scenarios

Elevation at launch

Edge cases

Code

Fees a market charges

The fee treasury address

Origination fee

The split

Elevation treasury share payments

From the elevation treasury to the curve

Allocations made after the split

Parameters

Scenarios

Elevation at launch

Elevation treasury share payment outcomes

Edge cases

Code