# Protocol Fee Sharing {% hint style="info" %} It is important for Lenders to understand that the $KASU token generation event is yet to occur. Kasu aims to launch its $KASU in due course. Any reference to $KASU Loyalty Levels, token utility and rewards in this document is therefore only relevant upon launch of the $KASU token. {% endhint %} Kasu charges a technology platform fee equivalent to 10% of lender yield, in consideration for active protocol operation and transaction facilitation services. $KASU Token Lockers who are also active Lenders receive a share of 50% of this platform fee, proportional to their rKASU balance. This equates to a benefit of 5% of lender yield for participating Token Lockers (Protocol Fee Sharing). Protocol Fee sharing is paid in USDC. The proportion of this amount to which a $KASU Token Locker (who is also a Lender) is entitled is based on their balance of rKASU relative to all rKASU in the Kasu ecosystem. For example, in a scenario where a total of 1,000 rKASU exists in the entire Kasu ecosystem, a Token Locker (who is also a Lender) who has 150 of these rKASU would be entitled to 15% of all Protocol Fees allocated to $KASU Token Lockers. This proportionality is augmented as more Lenders’ $KASU tokens are locked (or unlocked) to generate more rKASU (or burn more rKASU), entitling them to a proportionate share of protocol fees. Protocol Fee Sharing is based on the technology platform fee generated by Kasu, which totals 10% of all lender yield. This fee is shared as follows: * 5% is allocated proportionally to $KASU Token Lockers (who are also Lenders) based on their rKASU token balance. * 5% is allocated to the Kasu Protocol wallet to fund operations. For example, assume a Lending Strategy offers 20% Gross APY to Lenders. The Lender will incur technology platform fee equivalent to 10% of its interest earned, effectively deriving 18% Net APY after fees (i.e. 10% Fees \* 20% Gross APY = 2% Protocol Fee). The associated protocol fees are therefore shared as follows: * Half of this fee (i.e. 1%) is allocated to $KASU Token Lockers (based on the above requirements). * The other half of this fee (also 1%) is allocated to the Kasu protocol wallet. It is noted that the Credit Originator derives revenue by adding a margin to the 20% APY example when it originates loans to its business borrower clients (End Borrowers). This portion does not get captured in the above fee structure. --- # 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.kasu.finance/how-kasu-works/protocol-fee-sharing.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.