# Business Model {% hint style="info" %} **Good to know:** Ratio opted for a win-win approach: we generate more revenue when our users do too. {% endhint %} A business model outlines how a company generates revenue. In DeFi, most of the protocols provide services such as **lending, farming, minting, pooling, staking** and much more. In exchange for the provision of these services, some DeFi protocols charge high intransparent fees for processes such as **liquidation fees, stability fees** and **withdrawal fees** and in the process make big profits for themselves. At Ratio we see ourselves as partners with our users, their success is our success. We believe proper incentive design will lead to a stronger relationship between Ratio and its community. Therefore, while we can't avoid fees entirely, we keep them as low as possible, so that our business can remain sustainable and grow, while the lion's share of profit goes to our users. We aim to guarantee the best user experience by opting for a win-win approach. What does that imply? When our users generate more revenue, we do too! It is also important for us to be completely transparent with the fees we do charge, so no user ever feels there is a fee they didn't understand. Here are our best in industry fees. 0.5% origination fees (minting fee) 10% liquidation penalties (When liquidation functionalities will be implemented) 25% of LP farming interest (while the user keeps 75%) variable (described below) stability fees / interest on minted USDr 0% withdrawal and deposit fees. With this business model, Ratio is directly incentivized to make our users as much money as possible, because that means we make a share of the pie as well! Stability fees are calculated based on the current price of USDr and are applied weekly. The percentage is calculated as 1 - $USDr (and 0% if $USDr is greater than $1). Fees are applied as an increase in the debt of the user vault. * 0.5 % **origination fees** (minting fee) * 5% **current max liquidation penalties** (when we add native liquidation functionality) * 25% of **LP farming interest** (while the user keeps 75%) * Variable **stability fees / interest on minted USDr** (\[1- $USDr]% APY)\* * 0% **withdrawal and deposit fees** \* For more information see Stability Fees page. With this business model, Ratio is directly incentivized to make our users as much money as possible, because that means we make a share of the pie as well! **Interested in learning more? Check out our** [**Whitepaper**](https://app.ratio.finance/static/media/whitepaper.83f8c2bd.pdf) > --- # 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.ratio.finance/our-business/business-model.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.