Cardano Explained Without Jargon & Within 199 words
When you stake your Ada and delegate your wallet to a Stake Pool, you might notice some fees will apply.
Which fees apply when you stake your Ada?
There are 2 types of fees:
Fixed Fees This is an amount in Ada (340 or more)
Margin Fees This is a certain percentage (0%-100%)
Delegation Screen Yoroi Wallet showing "costs" (margin/fixed fees)
When are these fees charged?
Just before you receive your stake rewards in your wallet!
Each block minted by the pool, rewards the pool a certain amount of Ada. The higher the total stake of a pool, the higher the chances of finding one or more blocks during the epoch. These fees are deducted from the total rewards. How?
Example:
Total active stake of the Pool: 500k
Fixed fees: 340 Ada
Margin fees: 2%
Delegators:
Delegator A has 10k staked
Delegator B has 100k staked
Delegator C has 390k staked
2 blocks minted during Epoch
740 Ada rewarded per block
So what will the operator and the delegators get?
Total rewards: 740 x 2 blocks = 1.480 Ada (2 blocks minted)
Deducting 340 Fixed Fees: 1.480 - 340 Ada (fixed fees) = 1.140 Ada
Deducting 2% Margin Fees: 1.140 - (1.140 x 2%) = 1.117,20 Ada
Delegator A gets: (10k / 500k) x 1.117,20 = 22,34 Ada
Delegator B gets: (100k / 500k) x 1.117,20 = 223,44 Ada
Delegator C gets: (390k / 500k) x 1.117,20 = 871,42 Ada
Pool Operator gets: 340 + 1.140 x 2% = 362,80 Ada
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