Submitted by Trust, also found by 0x52
Paladin receives a 5% cut from Boost purchases, as documented on the website:
Warden takes a 5% fee on Boost purchases, and 5% on Quest incentives. However, there are various pricing tiers for Quest creators. Contact the Paladin team for more info.
Heres how fee calculation looks at  createPledge function:
The issue is that the fee is taken up front, assuming totalRewardAmount will actually be rewarded by the pledge. In practice, the rewards actually utilized can be anywhere from zero to totalRewardAmount. Indeed, reward will only be totalRewardAmount if, in the entire period from pledge creation to pledge expiry, the desired targetVotes will be fulfilled, which is extremly unlikely.
As a result, if pledge expires with no pledgers, protocol will still take 5%. This behavior is both unfair and against the docs, as its not Paladin receives a 5% cut from Boost purchases.
Paladin fee collection assumes pledges will be matched immediately and fully, which is not realistic. Therefore far too many fees are collected at users expense.
Fee collection should be done after the pledge completes, in one of the close functions or in a newly created pull function for owner to collect fees. Otherwise, it is a completely unfair system.
Kogaroshi (Paladin) acknowledged and commented:
