# Admin Fees

Admin fees are collected from loan repayments, as a fixed percentage of the total interest of the loan. Only successfully repaid loans contribute admin fees. In the case of a defaulted loan, the admin fee is used to offset liquidation losses.

Only the [`PoolFactory`](https://github.com/metastreet-labs/metastreet-contracts-v2/blob/master/contracts/PoolFactory.sol) contract can set the admin fee rate on a Pool and withdraw accumulated admin fees from a Pool.

Admin fees are set to zero for the time being. They can be enabled and managed through a governance process in the future to accrue fees to the protocol.


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