# Withdrawal Fee

Withdrawal Arbitrage” is able to drain fund from the pool and is harmful to the protocol’s long term financial health. To counter the attacks, there is a custom withdrawal fees mechanism.

In most cases, however, a very small withdrawal fee is already sufficient to prevent such an attack.

Assume the withdrawal amount is equal to 1% of the pool:

| Cov Ratio | Withdrawal Fee |
| --------- | -------------- |
| >= 1      | -0.0000%       |
| 0.9       | -0.0011%       |
| 0.8       | -0.0093%       |
| 0.7       | -0.0518%       |
| 0.6       | -0.2731%       |

You can learn more about withdrawal arbitrage and the design on withdrawal fee [here](broken://pages/e58MGByRDAxk9wxHAU1w).


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