Fees

Overview

This document explains the fee structure for users depositing SOL, existing staked accounts and Liquid Staking Tokens (LSTs) into the Pye Core smart contracts. On the trading front, although manifest.trade does not inherently charge any fees, Pye interfaces with the Manifest order book using a custom wrapper to capture maker and taker fees.

Protocol Fees

Deposit Fees

The following fees are only applied by the Pye protocol.

1. Base Deposit Fee: A percentage fee % taken from the initial deposit amount

   • Applied to both SOL and LST deposits

   • Calculated before validator delegation or LST lockup

   • Applies to both PT & YT

Pye's deposit fees and trading fees will be made public closer to launch. In the meantime, this document explains how the fee strcuture is distributed between Pye and the underlying validators.

Standard Validator Fees

Staking Fees

The following fees are the standard fee structure applied by valdiators. Pye bonds exist as a layer on top of the validator yield after fees. Important to mention these fees are not shared with Pye.

1. Validator Commission:

   • Standard validator commission charged by validator

   • Taken from staking rewards before distribution

2. Protocol Validator Fee:

   • Additional fee layer (typically 10% of the rewards generated)

   • Taken from post-validator commission rewards

Deposit Fee Summary

The following is a breakdown of an example of a one year bond that will showcase deposit fees as well as any validator commissions that would be generated during the term assuming a fixed 8% APY, and a 10% fee from the validator and 30 bps on Pye's deposit fees.

	Deposit	Issuance	Pye Fees	Validaor Feees	Redeemer receives
PT	100 SOL	100 pSOL	0.30 pSOL	0.00 pSOL	99.7 SOL
YT	0	400 ySOL	1.20 ySOL	**40.00 ySOL	7.19 SOL

**Note that validator fees are taken separate from the yield tokens

Trading Fees

Manifest's core protocol operates as a feeless foundation, allowing direct peer-to-peer trading without any protocol-level charges. However, Pye has created custom markets through wrapper programs that introduce fee structures while leveraging Manifest's underlying trading infrastructure.

Spot Trading Fee Rates

• Taker Fees

• Maker Fees

Wrapper-Based Markets

A quick summary explaining how Pye is leveraging wrapper to deploy custom markets. For more information you can read the The Orderbook Manifesto, containing more information.

1. The wrapper program acts as an intermediary layer between users and the core Manifest protocol

2. Developers can implement custom fee logic within their wrapper

3. Users interact with the wrapper program rather than directly with Manifest

4. The wrapper handles the actual trade execution on Manifest while applying its fee structure

5. Collected fees can be distributed according to the wrapper's programmed rules

This architecture enables:

• Market creators to design sustainable business models

• Custom fee structures based on specific market needs

• Revenue generation while preserving Manifest's feeless core

• Co-existence of both free and fee-based markets on the same protocol