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Layer 2 - Clearing Fee

The funding mechanism for Yellow Reserve Vault
Fees are paid from the broker to the Yellow Network Reserve Vault.
A Clearing Fee is due whenever broker positions are cleared or settled on Yellow Network. The fee is calculated as % of the settlement liability, converted into $YELLOW, and invoiced to each broker's dedicated $YELLOW spending wallet on settlement.
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  • The Clearing Fee is only applied to net cross-broker exchanged volume.
  • The Clearing fees are defined by Yellow Clearing House, and 100% of it goes to the Clearing House reserve smart contract.
  • There are dynamic fee levels with a floor fee that depends on the number of $YELLOW tokens stacked.
  • The Clearing Fee is not for profit and funds the Yellow Reserve Vault.
Clearing Fee=Net Settlement Liability calculated in $YELLOW x Clearing Fee (%)
Defined by
Yellow Network
Beneficiary
Yellow Network
Payment Ccy
​$YELLOW​
Periodicity
Periodicity: Calculated and paid on settlement (min. every 24h, or on a specific settlement request by the broker)

Clearing Fee Tiers

Broker Tier*
$YELLOW Stacked
Clearing Fee
4 channels
250.000
100 bps
8 channels
500.000
80 bps
16 channels
1.000.000
40 bps
32 channels
2.000.000
20 bps
64 channels
4.000.000
10 bps
*The applicable Broker Tier is defined at the beginning of each clearing cycle. Brokers can not move tiers during a clearing cycle.
Note: All positions are subject to a daily clearing at 0.00 am UCT. Brokers must ensure a sufficient $YELLOW token balance (as outlined in the Risk Management Section) to cover any outstanding Clearing Fees. Failure to meet the clearing fee payment will prevent the broker from engaging in new positions until the payment for the previous cycle is satisfied.