# Monetization

Marketmakers price in a required fee for the protocol of 80 basis points (0.8%). This is in line with other protocols and platforms in the space.

• Opensea - 2.5% secondary - 10% primary drops
• Uniswap - 0.05% stables - 0.30% on majors - 1% on most volatile
• AAVE / Solend - 5% liquidation bonus, 50bps to AAVE for majors, up to 15% + 1.5% on most volatile
• Lido - 10% fees on staking rewards

Collar - 0.80% * maturity (in years). E.g. a 6 month Collar would have a 40bp fee.

A critical difference between Collar and other protocols is that borrowers, protocol, and marketmakers all make more when crypto goes up, whereas liquidation revenue is higher when markets sell off.

Fees are paid onchain to the multi-sig controlled Collar Protocol treasury address.