The total transaction fee is the duration between the initiation of the transaction to the maturity of the pool, multiplied by the transaction fee per second. The transaction fee is equal to 𝑓𝑑 of principal, where 𝑑 is the duration of the pool at the time of transaction. Lenders will pay 𝑓𝑑 of principal, thus decreasing the bond they will receive. Borrowers will pay 𝑓𝑑 of principal as well, thus increasing the debt they have to pay. The value of 𝑓 is chosen and fixed at the deployment of the factory contract.