🎫Fees & Spread

Introduction

In line with industry standard, fees are calculated on the value of the total position size (leverage x collateral).

1. Fees Breakdown

   1. Cryptocurrencies

   2. Forex

   3. Commodities

   4. Revenue Distribution

2. Lifecycle of a Trade

   1. Opening Fee

   2. Spread

   3. Price Impact

   4. Borrowing Fees

   5. Dynamic Liquidation Prices

   6. Closing Fee

Fees Breakdown

The "Market/Limit" fee below goes to Buyback & Distribute if the order is a market order, and to oracle bots if the order is a limit order.

Additionally, the referrer rewards are always taken from the "Governance Fund" fees.

Finally, while all trades are open, they may pay a borrowing fee, which goes into the overcollateral layer of the corresponding gToken vault.

Cryptocurrencies

For BTC and ETH, the spread is 0%. For other cryptocurrencies the spread is dynamic, depending on the price impact formula.

1. Opening a trade: 0.06%

2. Closing a trade: 0.06%

Forex (Major)

Spreads on all major forex pairs are fixed at 0.01%.

1. Opening a trade: 0.012%

2. Closing a trade: 0.012%

Forex (Minor)

Spreads on all minor pairs are fixed at 0.01%.

1. Opening a trade: 0.016%

2. Closing a trade: 0.016%

Forex (Exotic)

Spreads on all exotic forex pairs are set per pair depending on their volatility.

1. Opening a trade: 0.02%

2. Closing a trade: 0.02%

Commodities (Tier 1)

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%)

2. Closing a trade (0.05%)

Commodities (Tier 2)

This category currently includes XAG/USD (Silver), WTI/USD (Oil), XPD/USD (Palladium), and XPT/USD (Platinum). Spreads on all tier 2 commodities are fixed at 0.04%.

1. Opening a trade: 0.08%

2. Closing a trade: 0.08%

Lifecycle of a Trade

Opening Fee

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 * (0.06/100) = 1.5 DAI fee

248.5 DAI is the total collateral value of your newly opened trade, and therefore its total position size is 2,485 DAI.

Fixed Spread

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

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.

Dynamic Spread

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}.

Cryptocurrencies

Dynamic spreads using the 1% depth in each direction (long: 1% depth above / short: 1% depth below) from Binance.

Forex

Fixed spreads.

Commodities

Fixed spreads.

ETH/USD Example

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.

Borrowing Fees

Borrowing fees are applied to trades while they are open.

Borrowing Fee

Borrowing fees treat open trades of the dominant side as vault borrowers. The fee is determined by a pair's (or the group the pair is part of) net OI relative to the overall vault TVL, meaning pairs (or groups) with more lopsided OI will charge more than pairs with balanced OI.

The fee is charged per block on a trade's total position size.

Please refer to the Medium article for further details.

Liquidation Prices

Trades liquidation prices can get closer over time if you pay borrowing fees.

Liquidation Price Distance = Open Price * (Collateral * Liquidation Threshold - Closing Fee - Borrowing 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, the liquidation threshold would be 67%, the closing fee would be 16 DAI (20,000*(0.08/100) and that you have paid 1 DAI in borrowing fees:

Liquidation Price = 20,000 - 20,000 * (50 * 0.67 - 16 - 1) / 50 / 100 = 19,888 USD.

Liquidation Thresholds

The liquidation threshold depends on asset class and leverage used. The values can be found in the following table, for Cryptocurrencies, Forex (major), Forex (minor), Forex (exotic), Commodities (gold), Commodities (other)

Cryptocurrencies

Cryptocurrencies

Leverage	Liquidation Threshold %
2	89.84
5	89.60
10	89.20
15	88.80
20	88.40
25	88.00
30	85.46
35	82.91
40	80.37
45	77.83
50	75.29
55	72.74
60	70.20
65	69.80
70	69.40
75	69.00
80	68.60
85	68.20
90	67.80
95	67.40
100	67.00
105	66.60
110	66.20
115	65.80
120	65.40
125	65.00
130	64.60
135	64.20
140	63.80
145	63.40
150	63.00

Fx (major)

Forex (major)

Leverage	Liquidation Threshold %
2	89.98
25	89.70
50	89.40
75	89.10
100	88.80
125	86.63
150	84.45
175	82.28
200	80.10
225	77.93
250	75.75
275	73.58
300	71.40
325	71.10
350	70.80
375	70.50
400	70.20
425	69.90
450	69.60
475	69.30
500	69.00
525	68.70
550	68.40
575	68.10
600	67.80
625	67.50
650	67.20
675	66.90
700	66.60
725	66.30
750	66.00
775	65.70
800	65.40
825	65.10
850	64.80
875	64.50
900	64.20
925	63.90
950	63.60
975	63.30
1000	63.00

Fx (minor)

Forex (minor)

Leverage	Liquidation Threshold %
2	89.97
25	89.60
50	89.20
75	88.80
100	85.54
125	82.29
150	79.03
175	75.77
200	72.51
225	69.26
250	66.00
275	65.60
300	65.20
325	64.80
350	64.40
375	64.00
400	63.60
425	63.20
450	62.80
475	62.40
500	62.00
525	61.60
550	61.20
575	60.80
600	60.40
625	60.00
650	59.60
675	59.20
700	58.80
725	58.40
750	58.00

Fx (exotic)

Forex (exotic)

Leverage	Liquidation Threshold %
2	89.96
25	89.50
50	89.00
75	84.33
100	79.67
125	75.00
150	70.33
175	65.67
200	61.00
225	60.50
250	60.00
275	59.50
300	59.00
325	58.50
350	58.00
375	57.50
400	57.00
425	56.50
450	56.00
475	55.50
500	55.00

Commodities (gold)

Commodities (gold)

Leverage	Liquidation Threshold %
2	89.90
10	89.50
20	89.00
30	87.50
40	85.00
50	82.50
60	80.00
70	77.50
80	75.00
90	72.50
100	70.00
110	69.50
120	69.00
130	68.50
140	68.00
150	67.50
160	67.00
170	66.50
180	66.00
190	65.50
200	65.00
210	64.50
220	64.00
230	63.50
240	63.00
250	62.50

Commodities (other)

Commodities (other)

Leverage	Liquidation Threshold %
2	89.84
5	89.60
10	89.20
15	88.80
20	88.40
25	88.00
30	84.74
35	81.49
40	78.23
45	74.97
50	71.71
55	68.46
60	65.20
65	64.80
70	64.40
75	64.00
80	63.60
85	63.20
90	62.80
95	62.40
100	62.00
105	61.60
110	61.20
115	60.80
120	60.40
125	60.00
130	59.60
135	59.20
140	58.80
145	58.40
150	58.00

Closing Fee

Let's say ETH/USD went up 1% from the open price, and we close the trade at 3,033.6. The pending profit (PnL) will be 1% of 2480 (our leveraged collateral), which is 24.85 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).

2485 * (0.06/100) = 1.988 DAI closing fee

--> 24.85 - 1.988 = 22.862 DAI PnL

Now let's also say that the trade paid 0.5 DAI of borrowing fees:

22.862 - 0.5 = 22.362 DAI final PnL

Therefore, you would receive 270.862 DAI (248.5 DAI collateral + 22.362 PnL) to your wallet after closing your trade.