> For the complete documentation index, see [llms.txt](https://udonfi-1.gitbook.io/udonfi-docs/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://udonfi-1.gitbook.io/udonfi-docs/liquid-staking/lsd-fee.md).

# LSD Fee

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### Current fees (explicit)

* **Staking (minting stCHR): 0.3%**
  * Applied to the CHR amount at the time you stake.\
    Net stCHR minted = CHR\_staked \* (1 - 0.003) (subject to rounding according to token decimals).
* **Unstaking (redeeming stCHR → CHR): 0.3%**
  * Applied to the gross CHR value you would receive at redemption (i.e., after exchange rate conversion).\
    Final CHR delivered = Gross\_CHR \* (1 - 0.003).
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### Examples

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<summary>Example A — Staking fee</summary>

* You stake **1,000 CHR**.
* Mint fee = 1,000 \* 0.003 = **3 CHR**.
* Net stCHR minted = **997 stCHR** (assuming 1:1 initial rate and simple rounding).

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<summary>Example B — Unstake fee (with a non-1 exchange rate)</summary>

* You redeem **1,000 stCHR** at exchange rate **1 stCHR = 1.05 CHR**.
* Gross CHR = 1,000 \* 1.05 = **1,050 CHR**.
* Unstake fee = 1,050 \* 0.003 = **3.15 CHR**.
* Net CHR after unbonding = **1,046.85 CHR**.

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### Why these fees exist

* Cover network & gas costs.
* Build protocol treasury and liquidity buffers.
* Provide funds for insurance/compensation in edge cases or to incentivize liquidity providers.
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### Where fees appear in UI

Before you confirm a stake or redeem, the Udon UI shows:

* Fee amount in CHR (and sometimes %).
* Net token amount you will receive (stCHR when staking; CHR after redemption).
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