> ## Documentation Index
> Fetch the complete documentation index at: https://docs.creda.finance/llms.txt
> Use this file to discover all available pages before exploring further.

# Take Rate

> Understanding Creda Finance's take rate and reserve factor systems

Creda uses two mechanisms for protocol revenue: a take rate on supplied balances and a reserve factor from borrower interest.

## Take Rate (on supply)

* Dynamic annual fee applied to supplied balances, configured per asset via governance
* Can be configured as:
  * **Fixed rate**: Constant percentage (e.g., 2% yearly)
  * **Utilization-based curve**: Rate varies with market utilization
* Example: 2% yearly on 1,000 USDC → 20 USDC
* Each asset can have unique take rate parameters set by governance

## Reserve Factor (from borrow interest)

* Portion of borrower interest kept by protocol, configured per asset via governance
* Can be configured as:
  * **Fixed rate**: Constant percentage of borrow interest
  * **Utilization-based curve**: Rate increases with utilization (higher risk → higher protocol reserves)
* Supply APY ≈ Borrow APY × Utilization × (1 − Reserve Factor)
* Higher utilization can trigger higher reserve rates to protect the protocol during riskier market conditions

Combined impact determines your net supply yield. Check the market UI for each asset's parameters.