Fees
Fabrica's fee structure minimizes friction for property owners while ensuring sustainable operation of the protocol and validator network.
Fabrica's fee structure is designed to minimize friction for property owners while ensuring sustainable operation of the protocol and validator network.
Fee Summary
| Fee Type | Determined By | When Charged |
|---|---|---|
| On-Ramp Fee | Validator | At first transaction (sale or loan) |
| Maintenance Fee | Validator | Annually |
| Transaction Fee | Marketplace | At sale |
| Financing Fee | Lending protocol | At loan origination |
On-Ramp Fees
On-ramp fees cover the cost of tokenizing a property, including:
- Title review and verification
- Document preparation and notarization
- County recording fees
- NFT issuance
Deferred Charging: On-ramp fees are authorized when the property is on-ramped but only charged when the token is first used in a transaction (sale or loan). This approach:
- Reduces friction for property owners exploring tokenization
- Charges users only when they realize value from the product
- Aligns incentives between the protocol and property owners
Different validators may apply various fee structures and discounts based on their business model.
Maintenance Fees
Maintenance fees support the ongoing services that keep properties in good standing:
- Validator monitoring and confidence score updates
- Mail forwarding and correspondence scanning
- Tax status tracking
- Metadata and documentation maintenance
Structure: A small annual fee calculated as a percentage of the property's estimated value. This fee ensures continued validator services for the life of the tokenized property.
Transaction Fees
When a property is sold on a marketplace, transaction fees may apply:
| Marketplace | Fee Structure |
|---|---|
| Fabrica Marketplace | Percentage of sale price, split between protocol and validator |
| External Marketplaces | Determined by the marketplace (e.g., OpenSea fees) |
Transaction fees on the Fabrica marketplace are distributed between:
- Protocol fee: Supports ongoing protocol development
- Validator fee: Compensates validators for their services
Financing Fees
When using a property token as collateral for lending, fees are determined by the lending protocol:
| Protocol | Fee Structure |
|---|---|
| NFTfi | Interest rates set by individual lenders in their loan offers |
| MetaStreet | Pool-determined rates based on capital provider terms |
Lending fees are separate from Fabrica protocol fees and are paid directly to the lending platforms or lenders.
Transparency
Fees are always displayed before any transaction is confirmed. Review fee disclosures in the application interface when:
- On-ramping a property
- Listing a property for sale
- Accepting a loan offer
For Developers
Developers building on the Fabrica protocol can integrate with the fee collection infrastructure. The FabricaFeeCollector contract handles:
- Collection of ERC-20 fees from obligors
- Distribution between protocol and validators
- Configurable fee splits
See the smart contracts documentation for technical details.
Updated 17 days ago