# Fees

Chi Protocol implements a straightforward fee structure that is both competitive and transparent. The fees are applied during two key operations:

{% tabs %}
{% tab title="Mint Fee" %}
**Minting Fee**

A small fee is charged when users mint new USC, ensuring that the protocol can maintain its operations and support its stability mechanisms. This fee is transparent and helps cover the costs associated with maintaining the 1:1 collateralisation of USC. 

<figure><img src="/files/agiqeavzGmuDvn4nEwIo" alt=""><figcaption><p>Mint Fee</p></figcaption></figure>
{% endtab %}

{% tab title="Redeem Fee" %}
**Redemption Fee**:

A fee is also applied when users redeem USC for the underlying collateral. This fee helps manage the protocol's liquidity and incentivises long-term holding, contributing to the overall stability of the system.

<figure><img src="/files/HkZzcnneRb4dMmfoOY51" alt=""><figcaption><p>Redemption Fee</p></figcaption></figure>
{% endtab %}
{% endtabs %}

These fees are designed to be minimal yet sufficient to support the protocol's sustainability, ensuring that Chi Protocol remains a reliable and cost-effective platform for its users.


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