How fixed & margin pool fees affect Cardano delegators?

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

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