# Platform Fee Distribution (Safety Incentives)

The Pawnfi lending contracts have designed to charge a portion of borrow rate as service fee, that is the Pawnfi platform fee, which will be partially distributed to the voting power holders. The service fee is determined by the Reserve Factor and Borrow Rate of each pools, which are the results of risk parameter setting and utilization rate.

For borrowing the fee is taken in the borrowed token and calculated against the final amount received. For example, if the borrowed token is ETH, the fee is taken in **ETH**. As Pawnfi lending market is consisted of multiple pools, service fee will also include several tokens (ex. ETH/ USDT/ DAI/ P-Token ... etc.)

See [Safety Incentives Mechanism](/pawn-token/voting-power/safety-incentives-mechanism.md) for more information.


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