Fees
Fabrica's fee structure is designed to minimize friction for property owners while supporting sustainable operation of the protocol and validator network. For current fee amounts and examples, see the help center.
Fee Summary
This page describes how each fee works. It does not state amounts: the current amounts are in the help center's What does Fabrica cost? and in the app, which shows every fee before you confirm.
| Fee | Set by | When you agree to it | When it is collected | Who pays, and how | When you don't pay it |
|---|---|---|---|---|---|
| Setup fee | Validator | When you add the property, as a USDC spending allowance (nothing leaves your account) | Once per property, the first time it is sold, borrowed against, or used in another app | The owner, from the authorized allowance | If you remove the property without having used it, it is waived |
| Marketplace fee | Marketplace | When you list or accept an offer (shown as an estimate until final) | At sale | The seller, deducted from the proceeds; the buyer pays the listed price | Not charged if you transfer the token without a sale; external marketplaces set their own fees |
| Loan interest | Lending pool, or the lender for peer-to-peer | When you accept the loan terms | At repayment, with principal | The borrower, to the pool or lender (not to Fabrica) | Not charged if you don't borrow |
| Payment processing | Payment provider | When you choose a bank, card or wire option | With that payment or cash-out | The payer, shown per option and included in totals | Paying with the funds already in your account has no processing fee |
Removing a property has no platform fee; recording costs are handled through the process. No recurring fee is charged today (an annual fee is planned, see Transparency).
Setup Fee
This fee covers the cost of adding a property (tokenizing it), including:
- Title review and verification
- Document preparation and notarization
- County recording fees
- NFT issuance
Deferred Charging: The fee is authorized when the property is added but only charged when the token is first used in a transaction (sale or loan) or used in another app. 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
If the authorization lapses: the property is hidden from the marketplace and cannot be borrowed against until the owner renews it, from the Owner Toolbox on the property page or the link in the reminder email. See What is the setup fee? in the help center.
Different validators may apply various fee structures and discounts based on their business model.
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 |
|---|---|
| Pool-Based Lending | Pool-determined rates based on capital provider terms |
| Peer-to-peer (external protocols, e.g. Gondi) | Interest rates set by individual lenders in their loan offers |
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:
- Adding a property
- Listing a property for sale, or accepting an offer (the marketplace fee is shown, and marked as an estimate until it is final)
- Paying by bank transfer, card or wire, or cashing out (the payment provider's processing fee is shown per option, and totals include it)
- Accepting a loan offer
Fabrica's conflicts disclosure lists every fee Fabrica charges or plans to charge. Besides the setup fee and the marketplace fee, it names a flat per-loan fee that borrowers may pay at origination, and an annual fee for the ongoing publication of the price oracle and Property checks that Fabrica plans to charge token holders. The annual fee is planned, not charged today, and no recurring fee is charged today.
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 8 days ago