Fees & Spread
In line with industry standard, fees are calculated on the value of the total position size (leverage x collateral), with the exception of the rollover fee which is on collateral only. It is also worth noting that spread and price impact are only relevant to opening a trade and not to closing. Spread can be decreased by using one of our NFTs.
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On all pairs, the "Governance & Team" fees are split 50/50, as well as the "ecosystem" fee below which is shared between GNS Single-Sided Staking and the gDAI vault.
The "Market/Limit" fee below goes to GNS staking if the order is a market order, and to NFT bots if the order is a limit order.
Aditionally, the referrer rewards are always taken from the "Governance & Team" fees.
Spreads on BTC/USD and ETH/USD are fixed at 0.04%, and dynamic depending on the price impact formula on all other pairs.
- 1.Opening a trade: 0.08%
- 0.06% -> Governance & Team
- 0.015-0.02% -> Referrer
- 0.02% -> Market/Limit
- 2.Updating a stop loss (guaranteed execution): 0.015% -> Governance & Team
- 3.Closing a trade: 0.08%
- 0.06% -> Ecosystem
- 0.02% -> Market/Limit
Spreads on all major forex pairs are fixed at 0.01%.
- 1.Opening a trade: 0.012%
- 0.009% -> Governance & Team
- 0.00225-0.003% -> Referrer
- 0.003% -> Market/Limit
- 2.Closing a trade: 0.012%
- 0.009% -> Ecosystem
- 0.003% -> Market/Limit
Spreads on all minor pairs are fixed at 0.01%.
- 1.Opening a trade: 0.016%
- 0.012% -> Governance & Team
- 0.003-0.004% -> Referrer
- 0.004% -> Market/Limit
- 2.Closing a trade: 0.016%
- 0.012% -> Ecosystem
- 0.004% -> Market/Limit
Spreads on all exotic forex pairs are set per pair depending on their volatility.
- 1.Opening a trade: 0.02%
- 0.015% -> Governance & Team
- 0.00375-0.005% -> Referrer
- 0.005% -> Market/Limit
- 2.Closing a trade: 0.02%
- 0.015% -> Ecosystem
- 0.005% -> Market/Limit
Tier 1 stocks are the least volatile ones, where we allow up to 50x (eg. $GOOGL). Spreads on all tier 1 stocks are fixed at 0.02%.
- 1.Opening a trade (0.08%)
- 0.06% -> Governance & Team
- 0.015%-0.02% -> Referrer
- 0.02% -> Market/Limit
- 2.Closing a trade (0.08%)
- 0.06% -> Ecosystem
- 0.02% -> Market/Limit
Tier 2 stocks are slightly more volatile stocks, where we allow up to 40x (eg. $META). Spreads on all tier 2 stocks are fixed at 0.04%.
- 1.Opening a trade (0.12%)
- 0.09% -> Governance & Team
- 0.0225%-0.03% -> Referrer
- 0.03% -> Market/Limit
- 2.Closing a trade (0.12%)
- 0.09% -> Ecosystem
- 0.03% -> Market/Limit
Tier 3 stocks are the most volatile stocks, where we allow up to 20x (eg. $GME). Spreads on all tier 3 stocks are fixed at 0.06%.
- 1.Opening a trade (0.16%)
- 0.12% -> Governance & Team
- 0.03%-0.04% -> Referrer
- 0.04% -> Market/Limit
- 2.Closing a trade (0.16%)
- 0.12% -> Ecosystem
- 0.04% -> Market/Limit
Spreads on all indices ETFs are fixed at 0.02%.
- 1.Opening a trade (0.05%)
- 0.0375% -> Governance & Team
- 0.009375-0.0125% -> Referrer
- 0.0125% -> Market/Limit
- 2.Closing a trade (0.05%)
- 0.0375% -> Ecosystem
- 0.0125% -> Market/Limit
This category currently only includes XAU/USD (Gold). Spreads on all tier 1 commodities are fixed at 0.01%.
- 1.Opening a trade (0.05%)
- 0.0375% -> Governance & Team
- 0.009375-0.0125% -> Referrer
- 0.0125% -> Market/Limit
- 2.Closing a trade (0.05%)
- 0.0375% -> Ecosystem
- 0.0125% -> Market/Limit
This category currently only includes XAG/USD (Silver). Spreads on all tier 2 commodities are fixed at 0.04%.
- 1.Closing a trade: 0.08%
- 0.06% -> Ecosystem
- 0.02% -> Market/Limit
- 2.Opening a trade: 0.08%
- 0.06% -> Governance & Team
- 0.015-0.02% -> Referrer
- 0.02% -> Market/Limit
Let's say we use 250 DAI at 10x leverage to long ETH/USD. The fee is applied to leveraged amount: 2,500 DAI.
2,500 * (0.08/100) = 2 DAI fee
248 DAI is the total collateral value of your newly opened trade, and therefore its total position size is 2,480 DAI.
When opening a trade the Chainlink oracle returns a price for the asset, for instance 3,003.19. The spread is then taken into account (0.04%), so the open price would be 3004.39 before consideration of the dynamic spread (see section below).
That is: 3,003.19 + (3,003.19 * 0.04 / 100) = 3004.39
We could have used an NFT to reduce the spread by as much as 35% (Diamond NFT). This would have resulted in opening with 35% less difference - at 3003.97. If you use high leverage, it is particularly beneficial to have an NFT.
Please make note that the spread is different for each pair - smaller pairs with lower liquidity have a higher spread. It is displayed on the front end next to the Price in the Trade Parameters box, and can be confirmed in the Pairs Storage contract by searching for the relevant pair index. Thus, an NFT is even more beneficial to use on these pairs.
Finally, please also note that NFTs only reduce the base spread, not the dynamic spread. Both are taken into account in the spread displayed on the website.
Dynamic Spread, formerly known as 'Price Impact' is added on top of the fixed spread (if the pair has one). It depends on the open interest of the pair, the position size of the trade being opened, and on the direction of the trade (long / short).
Dynamic Spread (%) = (Open interest {long/short} + New trade position size / 2) / 1% depth {above/below}.
The most in depth discussion of this can be found in the relevant medium article here. Please remember that when this article refers to Price Impact, this is the same thing - but is now called Dynamic Spread.
Dynamic spreads using 2x the 1% depth in each direction (long: 1% depth above / short: 1% depth below) from Binance, apart from BTC/USD and ETH/USD which use fixed spreads.
Fixed spreads apart from:
- Major news: 1% depth is set to 250k on relevant pairs - for instance during a CPI release.
- Low liquidity session: 1% depth is set to 10m on all pairs for 2 hours after New York close.
- Market closing: 1% depth is set to 250k on all pairs 30 minutes before the market closes.
Fixed spreads apart from:
- Major USD news: 1% depth is set to 250k on all pairs - for instance during a CPI release.
- Market closing: 1% depth is set to 250k on all pairs 30 minutes before the market closes.
Fixed spreads apart from:
- Market closing: 1% depth is set to 250k on all pairs 30 minutes before the market closes.
So using our above price example with a position size of 2,480 after fees, if the "1% depth above price" parameter for ETH/USD is 8m and there is 100,000 DAI of open long interest:
(100,000 + 2,480 / 2) / 8,000,000 = 0.0126% dynamic spread
This percentage is then applied to the opening price including the Fixed Spread. In the case of crypto, as there is no Fixed Spread, this is just 3,003.19:
Final opening price = 3003.19 + (3003.19 * 0.0126 / 100) = 3003.57
So in this case if the median spot price was 3003.19, the opening price would be 3003.57.
Rollover and funding fees are applied to trades while they are open. For the most in depth discussion please refer to the medium article here.
The Funding Fee adds value to the position on the less heavily exposed side (e.g. if most people are long - the trader will get paid for keeping a short open) - and will cost the position money on the more heavily exposed side (e.g. going long when most people are already long).
It will naturally change based on others opening and closing positions - it may change from negative to positive and vice versa during the life of a trade.
This means that if you take the less popular side, your liquidation price will gradually move further away (that is, become harder to liquidate) and your position will be worth more, and the opposite if you take the more popular side.
Specifically, on the UI:
- A green value means you earnt money from the position.
- A red value means the position cost you money.
The Rollover fee is charged each block and is only applied to the collateral. It helps allowing low leverage on the platform with appropriate risk management.
For example, looking at the image above, the rollover fee on TRX/USD at the time of the screenshot was 0.0082% per hour. This means if you had a 10x long open, you'd pay 0.00082% on your position size, and earn 0.0481% on your position size from funding fees (net positive of 0.04728% per hour).
Trades liquidation prices can get closer over time if you pay funding / rollover fees or go further away if you earn from funding fees.
Liquidation Price Distance = Open Price * (Collateral * 0.9 - Rollover Fees - Funding Fees) / Collateral / Leverage.
Liquidation price =
If Long: Open Price - Liquidation Price Distance
Else (Short): Open Price + Liquidation Price Distance.
For example, let's say that you have opened a long on BTC/USD at 20,000 USD using 100x leverage and 50 DAI collateral, and that you have earned 1 DAI in funding fees and paid 0.5 DAI in rollover fees:
Liquidation Price = 20,000 - 20,000 * (50 * 0.9 - 0.5 - (-1)) / 50 / 100 = 19,818 USD.
Let's say ETH/USD went up 1% from the open price, and we close the trade at 3,033.22. The pending profit (PnL) will be 10% of 2480 (our leveraged collateral), which is 248 DAI.
Now, we close the trade, and therefore pay the closing fee. Please note that the fees are always applied on the initial position size (without PnL).
2480 * (0.08/100) = 1.984 DAI closing fee
--> 24.8 - 1.984 = 22.816 DAI PnL
Now let's also say that the trade earned 1.2 DAI from funding, and paid 0.5 DAI of rollover fees:
22.816 + 1.2 - 0.5 = 23.516 DAI final PnL
Therefore, you would receive 271.516 DAI (248 DAI collateral + 23.516 PnL) to your wallet after closing your trade.
Last modified 19d ago