docs mechanism
Fees
The 10% protocol fee, its split and buy and burn.
STALL's protocol fee is 10% of every premium. The remaining 90% of each premium is credited to the vault of the tier the cover was bought in. All fee parameters are illustrative and subject to governance.
The protocol fee
Every premium is split as follows:
| Recipient | Share of premium |
|---|---|
| The tier's vault (underwriters) | 90% |
| $STALL stakers | 5% |
| Buy and burn | 5% |
The protocol fee is the last two rows together: 10% of the premium, divided equally between $STALL stakers and buy and burn.
Example: a 400 USDC premium
A cover buyer buys 10,000 USDC of 1 h cover at the illustrative rate of 4% per 30-day period and pays a premium of 400 USDC.
| Recipient | Share | Amount |
|---|---|---|
| 1 h tier vault (underwriters) | 90% | 360 USDC |
| $STALL stakers | 5% | 20 USDC |
| Buy and burn | 5% | 20 USDC |
| Total | 100% | 400 USDC |
The split is the same whether or not a halt occurs. Premiums are paid upfront; payouts come from first-loss capital and the tier's vault, not from the protocol fee.
Buy and burn
Half of the protocol fee, 5% of each premium, is used to buy $STALL and burn it, permanently removing the purchased tokens from supply. The details of how and when purchases are executed have not been published.
Buy and burn does not guarantee any effect on the price of $STALL. $STALL is not launched, so no buy and burn has taken place.
What the fee does not cover
The protocol fee is STALL's share of premiums. Transaction fees for using Base are separate: they are paid to the network, not to STALL.
Governance of fees
The fee rate and its split between stakers and buy and burn are subject to governance by $STALL stakers. The figures on this page are the intended design and may change. See $STALL staking and first loss and Worked examples for the fee split at the level of a whole tier.