# Fee Structure

## Supported Payment Currencies

Clore.ai supports multiple currencies for marketplace payments:

| Currency          | Deposit | Withdraw | Pay for Rentals | Extra Hoster Fee |
| ----------------- | ------- | -------- | --------------- | ---------------- |
| **CLORE**         | ✅       | ✅        | ✅               | 0%               |
| **Bitcoin (BTC)** | ✅       | ✅        | ✅               | 15%              |
| **USDT/USDC**     | ✅       | ✅        | ✅               | 15%              |

> **Tip:** Paying with CLORE avoids extra currency fees entirely.

***

## Marketplace Fees

### Base Fees

| Order Type | Base Fee |
| ---------- | -------- |
| On-Demand  | 10%      |
| Spot       | 2.5%     |

The base fee is **split 50/50** between renter and host.

### Extra Fees (Non-CLORE Currencies)

When paying with non-CLORE currencies (BTC, USDT, or USDC), an additional **extra hoster fee** is applied:

| Currency  | Extra Renter Fee | Extra Hoster Fee |
| --------- | ---------------- | ---------------- |
| CLORE     | 0%               | 0%               |
| Bitcoin   | 0%               | 15%              |
| USDT/USDC | 0%               | 15%              |

* **Extra renter fees** are not reducible by any mechanism
* **Extra hoster fees** can be reduced to 0% through [MFP Lock](#mfp-extra-fee-reduction) tiers

> **Important:** The extra hoster fee applies when renting with any non-CLORE currency (BTC, USDT, or USDC). Hosts are encouraged to lock MFP to offset this fee.

***

## Fee Reduction Mechanisms

Clore.ai provides two ways to reduce fees:

### 1. PoH (Proof of Holding) Fee Reduction

Hold CLORE tokens in Proof of Holding to reduce **base fees** for both renters and hosters.

**Formula:**

```
fee_reduction = round(min(poh_amount / 2,000,000, 1) × 50)%
```

The reduction scales **linearly** from 0% to a maximum of **50%** at 2,000,000 CLORE:

| CLORE in PoH | Fee Reduction |
| ------------ | ------------- |
| 0            | 0%            |
| 200,000      | 5%            |
| 500,000      | 13%           |
| 1,000,000    | 25%           |
| 1,500,000    | 38%           |
| 2,000,000+   | 50% (maximum) |

**Key points:**

* Applies to **both renter and hoster** base fees
* Works for **all currencies** (CLORE, BTC, etc.)
* Does **NOT** reduce extra fees
* Calculated per-transaction based on current PoH holdings
* Result is always rounded to a whole percentage

### 2. MFP Extra Fee Reduction

Lock CLORE in [MFP Lock](https://docs.clore.ai/for-hosts/mfp-lock-a-complete-breakdown-of-mechanics) tiers to reduce **extra hoster fees** on non-CLORE currency orders.

| MFP Tier           | Max Reduction | Capacity          | Unlock Period |
| ------------------ | ------------- | ----------------- | ------------- |
| Tier 1             | 30%           | MFP × 1,000 CLORE | 7 days        |
| Tier 2             | 30%           | MFP × 4,000 CLORE | 14 days       |
| Tier 3             | 40%           | MFP × 2,000 CLORE | 28 days       |
| **All Tiers Full** | **100%**      | MFP × 7,000 CLORE | —             |

Reductions are **additive** and **proportional** to how full each tier is. When all three tiers are fully locked, the extra hoster fee is reduced to **0%**.

**Key points:**

* Only reduces **hoster extra fees** (not renter fees, not base fees)
* Each tier contributes proportionally: `round(fill_ratio × max_reduction%)`
* Only matters for non-CLORE currencies (CLORE has 0% extra fee)
* Calculated dynamically based on current lock balance

***

## Fee Examples

### Example 1: CLORE Payment, No PoH

On-demand order, 100 CLORE/day settlement:

| Component            | Amount        |
| -------------------- | ------------- |
| Renter base fee (5%) | 5 CLORE       |
| Renter extra fee     | 0 CLORE       |
| **Renter pays**      | **105 CLORE** |
| Hoster base fee (5%) | 5 CLORE       |
| Hoster extra fee     | 0 CLORE       |
| **Hoster receives**  | **95 CLORE**  |

### Example 2: Bitcoin Payment, No PoH, No MFP Lock

On-demand order, 100 CLORE equivalent/day:

| Component              | Amount        |
| ---------------------- | ------------- |
| Renter base fee (5%)   | 5 CLORE       |
| Renter extra fee (0%)  | 0 CLORE       |
| **Renter pays**        | **105 CLORE** |
| Hoster base fee (5%)   | 5 CLORE       |
| Hoster extra fee (15%) | 15 CLORE      |
| **Hoster receives**    | **80 CLORE**  |

### Example 3: Bitcoin Payment, 1M CLORE PoH (Both Sides), Full MFP Lock

On-demand order, 100 CLORE equivalent/day:

| Component           | Calculation     | Amount           |
| ------------------- | --------------- | ---------------- |
| Renter base fee     | 5 × (1 - 25%)   | 3.75 CLORE       |
| Renter extra fee    | 0               | 0 CLORE          |
| **Renter pays**     |                 | **103.75 CLORE** |
| Hoster base fee     | 5 × (1 - 25%)   | 3.75 CLORE       |
| Hoster extra fee    | 15 × (1 - 100%) | 0 CLORE          |
| **Hoster receives** |                 | **96.25 CLORE**  |

> With full MFP Lock and 1M CLORE in PoH, Bitcoin payments become nearly as cost-effective as CLORE payments.

***

## Order Creation Fee

A small one-time fee is charged when creating a new order:

| Order Type | Bitcoin       | USDT/USDC | CLORE       |
| ---------- | ------------- | --------- | ----------- |
| On-Demand  | 0.0000003 BTC | $0.10     | 0.075 CLORE |
| Spot       | 0.0000001 BTC | $0.10     | 0.05 CLORE  |

***

## Minimum Balance Requirements

To create an order, you need a minimum balance:

| Order Type | Bitcoin     | USDT/USDC | CLORE   |
| ---------- | ----------- | --------- | ------- |
| On-Demand  | 0.00001 BTC | $1.00     | 5 CLORE |
| Spot       | 0.00001 BTC | $1.00     | 5 CLORE |

***

## Rental Duration Limits

| Parameter      | Value                 |
| -------------- | --------------------- |
| Minimum rental | 6 hours               |
| Maximum rental | 3000 hours (125 days) |

***

## Price Display

The price shown on the marketplace is the **host's base price** (without fees).

Your actual cost as a renter = **listed price + your base fee + your extra fee (if any)**

***

## Related Pages

{% content-ref url="../proof-of-holding/overview" %}
[overview](https://docs.clore.ai/proof-of-holding/overview)
{% endcontent-ref %}

{% content-ref url="on-demand-vs-spot" %}
[on-demand-vs-spot](https://docs.clore.ai/for-renters/on-demand-vs-spot)
{% endcontent-ref %}

{% content-ref url="../for-hosts/mfp-lock-a-complete-breakdown-of-mechanics" %}
[mfp-lock-a-complete-breakdown-of-mechanics](https://docs.clore.ai/for-hosts/mfp-lock-a-complete-breakdown-of-mechanics)
{% endcontent-ref %}

{% content-ref url="../proof-of-holding/poh-marketplace" %}
[poh-marketplace](https://docs.clore.ai/proof-of-holding/poh-marketplace)
{% endcontent-ref %}

{% content-ref url="../for-hosts/host-fees" %}
[host-fees](https://docs.clore.ai/for-hosts/host-fees)
{% endcontent-ref %}