Fees and terms
Fixed loan terms, fee structure, and what's locked in at the moment you borrow.
Based Loans offers three loan terms. You choose one when you open a loan, and the fee for that term is added to your buyback cost immediately. Nothing changes from that point forward. This page explains how the fee is calculated, what it pays for, and how to think about the tradeoff between term length and cost.
Loan terms and fees
| Term | Term fee | USDC received on $1,000 loan | Buyback cost |
|---|---|---|---|
| 15 days | 2.5% | $975.10 | $1,025.00 |
| 30 days | 5% | $975.10 | $1,050.00 |
| 45 days | 7.5% | $975.10 | $1,075.00 |
Two fees apply on every loan. The protocol fee (2.49%) is deducted from the USDC you receive when the loan opens. The term fee (2.5%, 5%, or 7.5%) is added to your buyback cost. Both are calculated on the loan amount and fixed at open.
On a $1,000 loan: you receive $975.10 after the protocol fee. Your buyback cost depends on the term you choose. The total out-of-pocket cost if you buy back is the gap between what you received and what you pay back.
The minimum loan amount is $50 USDC. To qualify for a loan, your collateral must be worth at least $100 at current prices, since the loan amount is 50% of collateral value.
Fees are fixed at loan open
The fee is calculated the moment your loan opens and does not change for any reason. It does not accrue over time. It does not increase if you hold the loan to the last day. It does not decrease if you buy back early.
If you open a 45-day loan and buy back after 5 days, you pay the full 45-day fee. This is intentional. Lenders configure their USDC around specific term lengths, and the fee they expect to earn is the same regardless of when within the term you buy back. Borrowers who want lower fees should choose a shorter term from the start.
The buyback cost formula is always:
Buyback cost = Loan amount + (Loan amount × Fee rate)
For a $600 loan on a 45-day term: $600 + ($600 × 7.5%) = $600 + $45 = $645 USDC
What the fee pays for
Two separate fees apply on every loan. Both are calculated at open, shown in the interface before you confirm, and never change.
Protocol fee (2.49%, at loan open). Deducted from the USDC you receive. This goes to the protocol treasury and ecosystem partners. If you walk away at expiry without buying back, this is the only fee you pay.
Term fee (2.5% / 5% / 7.5%, on buyback). Added to your buyback cost. This goes entirely to the lenders who funded your loan. It is how lenders earn yield. The fee is fixed from loan open regardless of when within the term you buy back.
Full example on a $500 loan, 30-day term:
| Protocol fee at open (2.49%) | -$12.45 deducted from USDC received |
| USDC in your wallet | $487.55 |
| Term fee on buyback (5%) | +$25.00 added to buyback cost |
| Buyback cost | $525.00 |
You received $487.55 and need $525.00 to reclaim your collateral. The $37.45 difference is the total cost of the loan: $12.45 to the protocol at open, $25.00 to lenders on buyback.
There are no other fees. No origination fee, no early repayment penalty beyond the locked-in term fee, no gas surcharge.
Choosing the right term
The tradeoff is straightforward. Shorter terms cost less but give you less time. Longer terms cost more but keep your options open.
Choose 15 days if you need USDC quickly and are fairly certain you will buy back within two weeks. The 2.5% fee is the lowest available and makes the buyback cost easy to clear.
Choose 30 days if you want a reasonable window and are comfortable paying 5%. This is the most common term for borrowers who are uncertain about their timeline.
Choose 45 days if you want maximum flexibility and are not concerned about the higher fee. The 7.5% cost is still fixed, and having 45 days to decide whether to buy back gives you significant breathing room if market conditions change.
You cannot extend a loan after it opens. If you open a 15-day loan and need more time, you would need to open a new loan after the first one expires, assuming your collateral has not already transferred to lenders. Plan your term choice carefully.
Partial buybacks and fees
Partial buybacks work proportionally. If you pay half the total buyback cost, you receive half your collateral. The fee is not front-loaded or back-loaded. It scales exactly with the portion of collateral you are reclaiming.
Example: You opened a loan and your total buyback cost is $1,050 USDC ($1,000 loan + $50 fee on a 30-day term). You pay $525 USDC as a partial buyback. You receive exactly half your collateral. The remaining half stays in the loan with the same expiry date and will cost another $525 USDC to reclaim.
The minimum partial buyback payment is $1 USDC.
Summary
- Three terms: 15 days (2.5%), 30 days (5%), 45 days (7.5%).
- The fee is a flat percentage of the loan amount, calculated at loan open and never changed.
- Buyback cost = loan amount + fee. This number is fully known before you sign.
- Buying back early does not reduce the fee. Choose your term based on how long you might need.
- The term fee goes entirely to lenders as yield. A separate, smaller protocol fee is deducted from the USDC at loan open.
- Partial buybacks are proportional: pay half the cost, get half the collateral back.
- Minimum loan: $50 USDC. Minimum partial buyback: $1 USDC.