# 1 Example Calculation

## Fees — One Example Calculation

### Scenario: USDT Loan (Hedged)

* **Collateral**: $10,000 (in 0FX, valued via oracle/TWAP)
* **LTV at Origination**: 35%
* **Borrowed**: $3,500 USDT
* **Period**: 90 days
* **Base APR**: 4.0% / yr
* **Funding (Hedge)**: assume \~6.0% / yr average (illustrative)
* **Execution Costs**: gas + swap + hedge ops = $40 (illustrative)

#### Costs Over 90 Days

* **Base Interest**: $3,500 × 4.0% × (90/365) ≈ $34.52
* **Funding Pass-through**: $3,500 × 6.0% × (90/365) ≈ $51.78
* **Execution (One-off)**: ≈ $40.00

**Total Estimated Cost ≈ $126.30**

#### Effective Cost for the Period

$126.30 / $3,500 ≈ 3.61% for 90 days

*Non-annualized illustration; actual funding may be lower/higher.*

*If funding turns negative, the credit reduces the total.*

#### Notes

* ETH loans (no USD/BTC hedge) do not include funding; same APR math, smaller execution.
* All figures are examples; your live quote lists exact APR, funding treatment, and estimated execution before you proceed.