Skip to main content
Two fees can apply when a loan is originated, including an integrator fee you can configure. Fees apply only at origination, not on subsequent operations against the same loan, and both fees come out of the loan proceeds rather than adding to the borrower’s debt.

​
Fees breakdown

Each origination can include the following fees: A fee applies only when the loan’s debt is zero at execution time: a first borrow, or a borrow after a full repayment. Borrowing more against a loan that already carries debt adds no fee. Repayments, collateral additions, collateral withdrawals, and closes never charge a fee. A zero-rate fee produces no fee entry and no onchain transfer.

​
Loan proceeds and funds flow

The following example shows what happens when a borrower originates a 1,000 USDC loan against cirBTC collateral on Arc, and you have configured a 25 basis point integrator fee:
1

Borrower confirms an origination

The borrower confirms a 1,000 USDC borrow. This is the full principal the loan will carry.
2

Loan records the full principal

The loan is opened for 1,000 USDC of principal owed to the underlying lending protocol. This is the amount the borrower repays over time, regardless of any fees applied at origination. See best practices for what to show the borrower before they sign.
3

Circle fee applies

The Circle fee is 0%, so no USDC is deducted for this leg.
4

Integrator fee is carved from the loan proceeds

Your 25 basis point (0.25%) integrator fee applies to the 1,000 USDC principal, carving 2.5 USDC out of the loan proceeds. Fees round down to the nearest USDC atom, and any remainder stays with the borrower.
5

The fee splits between your recipient and Arc

The 2.5 USDC integrator fee is transferred onchain in two legs:
  • 2.25 USDC (90% of the fee) to your configured fee recipient.
  • 0.25 USDC (10% of the fee) to Arc.
6

Borrower's wallet receives the net proceeds

The borrower’s wallet receives 997.5 USDC:
  • Loan principal: 1,000 USDC.
  • Deduct 2.5 USDC integrator fee.
  • Net proceeds: 997.5 USDC.
This flow is illustrated in the following diagram:

​
Best practices for integrator fees

Follow these best practices when setting an integrator fee:
  • Set the fee once during app setup with kit.borrow.setIntegratorConfig. The rate and recipient apply to every subsequent origination and do not need to be passed per call.
  • Use a fee recipient address on the same blockchain where the loan is originated.
  • Preview the fee amount and net proceeds before the borrower signs. The borrow quote returns a fees array with each active leg’s type, token, and amount.
  • Before the borrower confirms an origination, show:
    • Loan summary: principal owed, integrator fee, and net proceeds to the borrower’s wallet.
Example UI display
  • Return human-readable decimal strings. For example, return "1000" rather than "1000000000" for 1,000 USDC. The App Kit SDK handles base-unit conversion internally.