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Reserve and Fees
Morphine is charging 30% platform fees from borrower interest, used as follow:
- 50% to 100% is supplied and ready to be burn in case of pool loss
- Potentially 45% is transfered to the App builders
- Potentially 5 % is used to pay referrals
To limit senior suppliers risk, the loss are compensated by the insurance pool, ready to burn LPs. The insurance pool is funded by platform fees.
When a drip is liquidated, a part is taken and sent to the insurance fund and the other part is used to reward the liquidator. You can check the concerned pool page as each has its own configuration.