Official Announcement: Refund of Flamincome withdraw fees

Due to incomprehensive information displayed on the Flamincome interface, there have been certain users who withdrew USDT with a 0.5% withdrawal fee charged without prior knowledge. Flamincome will refund the withdrawal fee to these users.

• For users who withdrew assets before UTC+8 13:00, September 26, 2020: The withdrawal fee will be refunded to the destination address of the withdrawal. *

• For users who withdraw assets after UTC+8 13:00, September 26, 2020: A withdrawal fee of no more than 0.5% will be charged according to the fees notification displayed on the Flamincome website.

Why is there a withdraw fee of up to 0.5%?

For aseet safety, Flamincome reused the USDT strategy of yearn.finance, which has been tested against a large amount of asset. Within this strategy, a withdrawal fee of no more than 0.5% is implemented in order to prevent the impact of frequent transfers in and out of funds from eroding other users’ assets. During withdrawal, this fee is only applicable to users who are having insufficient balance in the contract, leading to the need to use assets from an external contract.

Please also be notified with the following friction costs in Flamincome:

1. When minting nTokens from fTokens, the contract will leave 0.5% of the fTokens unminted to ensure accurate value pegging of the nToken. This unminted amount of 0.5% is still under the control of the user, and will be unlocked when the user withdraws back from nTokens to fTokens.
2. The USDT, WBTC and WETH strategies will take 5% of the profits made, to pay for fees such as gas on Ethereum, and can be used as insurance deposits in the future.
3. There may be a marginal slippage (usually far less than 0.1%) when the strategy transfers assets to yield-generating contracts, such as Curve.

These friction costs are common in various yield aggregators such as yEarn. Taking into account of Flamincome’s yield generating ability, the costs above are usually covered in a few days to 1–2 weeks and will continue to generate interest.

*If the destination address you used to withdraw assets has been abandoned, please contact us in time. The refund time will be announced separately.