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

# Market Fees

> How deposit fees work for Loan assets in Morpho markets when using the Dynamo interface, the current fee switch status, and how fees are distributed.

<Info>
  Morpho UI does not allow users to deposit the loan asset directly into markets. This is a convenience feature provided by Dynamo.
</Info>

## What is the market deposit fee?

When you deposit the **Loan asset** (e.g., earn [USDC yield](https://dynamo.finance/) in a USDC/ETH market) into a Morpho market through the Dynamo interface, a small deposit fee may be applied. This is the only market-level fee Dynamo charges.

<Note>
  The deposit fee applies **only to Loan asset deposits** made via the Dynamo UI. There are no other market-level fees, no borrowing fees, no withdrawal fees, and no fees for supplying collateral assets.
</Note>

## Current fee switch status

The fee switch for market deposits is **controlled by Dynamo governance**. Its current status (on or off) and the active fee percentage are determined by a governance vote and are visible on each market's detail page in the app.

| Status  | Effect                                     |
| ------- | ------------------------------------------ |
| **Off** | No deposit fee is charged.                 |
| **On**  | A percentage is deducted from the deposit. |

<Tip>
  Always check the market detail page before depositing to confirm the current fee switch status and exact fee percentage for that market.
</Tip>

## Who does not receive fees?

* [**Morpho Protocol**](https://dynamo.finance/) — Dynamo's market-level deposit fee is separate from any Morpho-native reserve factor. Morpho's own reserve factor/fee (if any) is applied at the Morpho contract level and is not collected by Dynamo.
* **Market creators or third parties** — The fee flows exclusively to the Dynamo Treasury.

## Summary

<AccordionGroup>
  <Accordion title="Is there a fee if I interact with Morpho directly (not via Dynamo)?">
    The Dynamo interface deposit fee only applies when you use the Dynamo UI. If you interact with the underlying Morpho smart contracts directly, this specific fee is not applied, though any Morpho-native fees would still apply as configured at the Morpho level.
  </Accordion>

  <Accordion title="Is the fee taken from my principal or my yield?">
    The deposit fee is applied at the time of deposit (deducted from the deposited amount), not from accrued yield.
  </Accordion>

  <Accordion title="Can the fee be changed?">
    Yes. The fee switch and fee percentage are governance-controlled. Any change requires a successful governance vote. See the Governance section for details.
  </Accordion>
</AccordionGroup>