# Fees Dahlia implements a variety of fees that help sustain the protocol, ensure market stability, and incentivize certain behaviors within the ecosystem. Below are the core fees associated with Dahlia markets: #### Protocol Fee Applied to each market, deducted from the borrower's APY, and directed to the DAO treasury. * **Default:** 5% of the interest rate earned by lenders. * **Maximum:** The protocol fee rate is capped at 30%. #### Reserve Fee Provides a safety buffer in the event of bad debt. Collected from borrowers and directed to a reserve or insurance buffer. * **Default:** 0%. #### Flashloan Fee Applied whenever users use Dahlia's flashloan functionality. Flashloans allow borrowing without collateral, provided the funds are returned in the same transaction. * **Default:** 0%. * **Maximum:** Capped at 3%. These fees can be adjusted by governance and are collected to ensure the protocol maintains sustainability, supports development, and provides safety mechanisms for market participants. --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://docs.dahlia.xyz/governance-and-fees/fees.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.