# Redemption Fee The formula for calculating the redemption fee: $$Redemption\ Fee\ =\ (baseRate + 0.5%) × borrowed\ USDA$$ The Redemption Fee in the Agilely Protocol is a one-time charge that comes into play when users redeem their USDA. This fee's calculation is based on a dynamic variable called the baseRate. Each time there's a redemption, the baseRate goes up a bit, and it gradually goes down over time since the last fee event (see [baseRate](broken://pages/uYKTiHqApqC1AcrbA9QN)). The fluctuations in the baseRate directly impact the redemption fee, which, in turn, shapes the overall cost of borrowing. This deliberate interplay ensures that borrowers thoughtfully assess their borrowing decisions, cultivating an environment of balanced borrowing practices. --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://docs.agilely.io/how-agilely-works/protocol-fee/redemption-fee.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.