# Fee Structure

The fees charged are based on a fair cost model and designed to assist Crypto Factor develop both the $cDFI and $CFR ecosystems in a sustainable way.&#x20;

There are three fees considered for this service:

<mark style="color:blue;">**Minting Fee:**</mark> This is applied to the $DFI collected during each cDFI sale.

<mark style="color:blue;">**Node Ops Fee:**</mark> This is applied to the $DFI rewards generated by the MasterNodes before the sum total is sent to the staking service for distribution to the cDFI stakers.

<mark style="color:blue;">**Redemption Fee:**</mark> This is applied to the redemption process as the $cDFI gets re-swapped to $DFI during a withdrawal event.

### **How will these be introduced?**

Phase 1 fees will be introduced with no Redemption Fee. This is designed to allow users to trial the service and not be charged for withdrawals should the service not be to their liking.

<table><thead><tr><th>Fee</th><th width="151">Rate</th><th>Detail</th></tr></thead><tbody><tr><td>Minting Fee</td><td>0.5%</td><td><p>Collected during the creation of cDFI </p><p>(paid in DFI from the proceeds of sale)</p></td></tr><tr><td>Node Ops Fee</td><td>5.0% (rewards)</td><td><p>Collected during the MasterNode reward payouts</p><p>(paid in DFI)</p></td></tr><tr><td>Redemption Fee</td><td>0.5%</td><td>Collected during the withdrawal of DFI (paid in DFI)</td></tr></tbody></table>

The primary target for $DFI revenue will be for the increase of $CFR liquidity depth ($CFR Ecosystem) and the extension of the Crypto Factor MasterNode Factory ($cDFI Ecosystem).

As the service gathers pace and faces growth further refinements to the revenue model may see $DFI used for $CFR Asset Backing. All revenue is destined to improve either current products and services for the community OR provide development funds for our Crypto Factor Lab for the continued research into new and exciting products and services for your users!&#x20;


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