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Fee Structure & Distribution​

The yield generated by assets in Pi Protocol doesn’t all go to users—some of it is retained by the protocol to ensure sustainability and cover risk. Here's how it’s distributed:

  • Protocol Fee: 20% of all yield is collected by the protocol before distribution.

  • Treasury Reserve: Funds long-term development, new features, and strategic growth.

  • Loss Reserve Pool: Protects against defaults in RWAs like IIAs or private credit. If an underlying borrower fails to repay, the reserve absorbs the loss.

  • USPi Rewards: A portion of fees is distributed to users who stake or lock up USPi governance tokens. This incentivizes long-term participation.

  • sUSPi Fee Boost: Users who lock their USPi for longer durations receive amplified rewards based on the time lock.

All fee flows are handled by smart contracts. Users can monitor where protocol revenue is going, how much they are earning, and how fees evolve over time—ensuring complete transparency.