COTI updates its fee structure

COTI’s economy became more dynamic after the team announced that it had decided to modify the fee structure based on the feedback given by its community. One factor that will remain constant is the streamlining of fees and their distribution as rewards.

The new fees model lowers the deposit fees from 0.5% per deposit to 0.25% per deposit. The decrease of 50% is coupled with a new withdrawal fee which will now consider the number of days users have held onto their deposit.

Multipliers will play an equally important role. The fee was earlier fixed at 0.5% without considering the maturity of the deposit or its multiplier. That changes effective January 15, 2023. The locking period and multipliers will play a very important role in deciding the withdrawal fees, which can go as low as 0.4%.

Multiplier fees will now be calculated based on the number of days. They will be applied solely on multiplied deposits except for X1 deposits. Multiplier fees can now be calculated as follows:

Rewards have also been exempted from the revised fee structure when calculating the multiplier fees. Early withdrawals could attract fees from 0% – 2%, with the final calculator depending on the locking period.

For instance, a deposit with a locking period of 30 days will see a zero early withdrawal fee after it concludes 30 days on the register. The same applies to a deposit with a locking period of 60 days, 90 days, and so on.

Liquidation risk fee will fall in the range of 1% to 5% depending on the multiplier the user has added to their deposit. The same will be payable at the time of making the withdrawal. It has to be noted that the Liquidation Risk Fee applies only if the user has applied a multiplier to their deposit.

Here is how COTI Treasure will now calculate the Liquidation Risk Fee:-

COTI Network shared the update through an official blog post wherein the revised fee structure has been called transparent and fair. Moreover, it aligns with the long-term objective of the network. However, the revised fee structure will go into effect on January 15, 2023. It will affect existing deposits along with those done after implementing the updated fee structure.

COTI Network has also announced to share a drafted roadmap for the next year in the days to come. The community can expect many more updates and changes in addition to the ones discussed in this article.