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>ARB) 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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