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How fixed & margin pool fees affect Cardano delegators?

Updated: Sep 12, 2021

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:

  1. Fixed Fees This is an amount in Ada (340 or more)

  2. 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

If you have more questions about Cardano or Staking Cardano, simply join our Discord server and ask me anything!


Please leave your comments below and let me know what other subjects you would want me to cover without Jargon & within 199 words.


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