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Fees & Spread

Introduction

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.

Fees Breakdown

Cryptocurrencies

  1. 1.
    Opening a trade: 0.08%
    • Project Fund (0.03%)
    • Dev Fund (0.03%)
    • If referral link used: 0.015-0.02% is given to the referrer (taken from project fund and dev fund rewards).
    • Limit orders: NFT Bots (0.02%)
    • Market orders: Single Sided Staking (0.02%)
  2. 2.
    Rollover & Funding fee while trade is open
  3. 3.
    Updating a stop loss: 0.015% (because of guaranteed execution)
  4. 4.
    Closing a trade: 0.08%
    • Ecosystem (0.06%)
      • 40% to GNS Single Sided Staking
      • 40% to DAI vault
      • 20% to GNS/DAI LPs (Why 20%?)
    • TP/SL triggers: NFT Bots (0.02%)
    • Market orders: Single Sided Staking (0.02%)

Forex

  1. 1.
    Opening a trade: 0.008%
    • Project Fund (0.003%)
    • Dev Fund (0.003%)
    • If referral link used: 0.0015-0.002% is given to the referrer (taken from project fund and dev fund rewards).
    • Limit orders: NFT Bots (0.002%)
    • Market orders: Single Sided Staking (0.002%)
  2. 2.
    Rollover & Funding fee while trade is open
  3. 3.
    Closing a trade: 0.008%
    • Ecosystem (0.006%)
      • 40% to GNS Single Sided Staking
      • 40% to DAI vault
      • 20% to GNS/DAI LPs
    • TP/SL triggers: NFT Bots (0.002%)
    • Market orders: Single Sided Staking (0.002%)

Stocks

The additional fees going to the project fund on stocks are going to be used to bootstrap the acquisition of GNS / DAI liquidity, to speed up our roadmap towards single sided $GNS staking.
Tier 1:
Tier 1 stocks are the least volatile ones, where we allow up to 100x (eg. $GOOGL).
  1. 1.
    Opening a trade (0.12%)
    • 0.05% --> project fund
    • 0.05% --> dev fund
    • If referral link used: 0.025%-0.033% is given to the referrer (taken from project fund and dev fund rewards).
    • Limit orders: NFT Bots (0.02%)
    • Market orders: Single Sided Staking (0.02%)
  2. 2.
    Rollover & Funding fee while trade is open
  3. 3.
    Closing a trade (0.12%)
    • Ecosystem (0.1%)
      • 40% to GNS Single Sided Staking
      • 40% to DAI vault
      • 20% to GNS/DAI LPs
    • TP/SL triggers: NFT Bots (0.02%)
    • Market orders: Single Sided Staking (0.02%)
Tier 2:
Tier 2 stocks are slightly more volatile stocks, where we allow up to 100x (eg. $FB).
  1. 1.
    Opening a trade (0.2%)
    • 0.09% --> project fund
    • 0.09% --> dev fund
    • If referral link used: 0.044%-0.059% is given to the referrer (taken from project fund and dev fund rewards).
    • Limit orders: NFT Bots (0.02%)
    • Market orders: Single Sided Staking (0.02%)
  2. 2.
    Rollover & Funding fee while trade is open
  3. 3.
    Closing a trade (0.2%)
    • Ecosystem (0.18%)
      • 40% to GNS Single Sided Staking
      • 40% to DAI vault
      • 20% to GNS/DAI LPs
    • TP/SL triggers: NFT Bots (0.02%)
    • Market orders: Single Sided Staking (0.02%)
Tier 3:
Tier 3 stocks are the most volatile stocks, where we allow up to 50x (eg. $GME).
  1. 1.
    Opening a trade (0.32%)
    • 0.15% --> project fund
    • 0.15% --> dev fund
    • If referral link used: 0.074%-0.099% is given to the referrer (taken from project fund and dev fund rewards).
    • Limit orders: NFT Bots (0.02%)
    • Market orders: Single Sided Staking (0.02%)
  2. 2.
    Rollover & Funding fee while trade is open
  3. 3.
    Closing a trade (0.32%)
    • Ecosystem (0.3%)
      • 40% to GNS Single Sided Staking
      • 40% to DAI vault
      • 20% to GNS/DAI LPs
    • TP/SL triggers: NFT Bots (0.02%)
    • Market orders: Single Sided Staking (0.02%)

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 * (0.08/100) = 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.

Spread

When opening this trade, the Chainlink oracle returned 3,003.19 for ETH/USD. The spread is then taken into account (0.04%), so the open price would be 3004.39 before consideration of price impact.
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 price impact. Both are included in the spread displayed on the website.

Price Impact

It depends on the open interest of the pair and the position size of the trade being opened, and also on the direction of the trade (long / short).
Price impact (%) = (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.

Forex

There is 0 price impact on forex.

Crypto

The price impact is modelled on the 1% depth in each direction (long -> 1% depth above / short -> 1% depth below) from Binance multiplied by two - as we use median spot prices from 7 exchanges, to only use the 1% depth from Binance would be overly conservative.

Stocks

The 1% depths are set at $10m (tier 1), $5m (tier 2) and $2.5m (tier 3) in both directions (long / short).
ETH/USD Example
So using our above 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%
This value is then added to the spread. Our final opening price with the price after the spread being 3004.39 is:
Final opening price = 3004.39 + (3004.39 * 0.0126 / 100) = 3004.768
So in this case if the median spot price was 3003.19, the opening price would be 3004.768.

Rollover & Funding Fees

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.

Funding Fee

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 earn money from the position.
  • A red value means the position will cost you money.
Example snapshot of funding fee values per hour for BTC/USD.
Rollover Fee
The Rollover fee is charged each block and is only applied to collateral. It helps allowing low leverage on the platform with appropriate risk management.
For example, looking at the image above, the rollover fee on BTC/USD at the time of the screenshot was 0.0136% per hour. This means if you had a 10x long open, you'd pay 0.00136% on your position size, and earn 0.0089% on your position size from funding fees (net positive).

Dynamic Liquidation Prices

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: 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.

Closing Fee

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 --> 248 + 24.8 - 1.984 = 270.816 DAI.
Now let's also say that the trade earned 1.2 DAI from funding, and paid 0.5 DAI of rollover fees:
270.816 + 1.2 - 0.5 = 271.516 DAI
Therefore, you would receive 271.516 DAI to your wallet after closing your trade.

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Outline
Introduction
Fees Breakdown
Cryptocurrencies
Forex
Stocks
Lifecycle of a Trade
Opening Fee
Spread
Price Impact
Rollover & Funding Fees
Dynamic Liquidation Prices
Closing Fee