# Protocol Fee Structure

* **Position fee for perpetual trading:** 0.1% of position size (open/close)
* **Liquidation fee**: $5
* **Dynamic borrowing fee** (interest rate for leveraged/perpetual trading)
  * Traders pay a borrowing fee every hour. The fee is calculated dynamically based on the asset utilization rate: `Borrowing fee (per hour) = (assets borrowed) / (total assets in pool) * 0.01%` 
  * Maximum borrowing fee: 0.01% per hour (at 100% utilization)
* **Maintenance margin**: 1% 
  * Liquidation occurs when the debt of an open position reaches 99% of the user's collateral. Any leftover funds after liquidation will be sent back to the user's wallet.
* **Swap fee**: ranging from 0% to 0.65%
  * The base swap fee equals 0.2% for non-stablecoin swaps (i.e. USDT>ETH, or BTC>ETH) and 0.01% for stablecoin swaps (i.e. USDC<>USDT). Note that the protocol incentivizes the swapping of assets that are underrepresented (in terms of pool weight) by dynamically reducing the swap fee and vice versa.
* **LP minting and burning fee (Tranches):** 0% to 0.6%
  * The base LP minting and burning fee equals to 0.2%. The fee is dynamically determined for each asset to incentivize bringing the actual weight closer to the target weight. The minting and burning fee decreases whenever adding/removing liquidity would bring the actual weight closer to the target weight, and vice versa.


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