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Fees, Spread & Example

Introduction

In line with industry standard, fees are calculated on the value of the total position size (leverage x collateral).
Please note however that a 0.5% fee on the collateral + PnL (without leverage) is applied when closing the trade. For example, this corresponds to 0.05% of the position size when using 100x leverage.

Fees Breakdown

Cryptocurrencies

  1. 1.
    Opening a trade
    1. 1.
      0.03% --> Project fund
    2. 2.
      0.03% --> Dev fund
    3. 3.
      0.02% --> NFT bots (limit orders only)
  2. 2.
    Closing a trade
    1. 1.
      0.06% --> Liquidity Providers (LPs)
    2. 2.
      0.02% --> NFT bots (limit orders only)

Forex

  1. 1.
    Opening a trade
    1. 1.
      0.003% --> project fund
    2. 2.
      0.003% --> dev fund
    3. 3.
      0.002% --> NFT bots (limit orders only)
  2. 2.
    Closing a trade
    1. 1.
      0.006% --> LPs
    2. 2.
      0.002% --> NFT bots (limit orders only)

Stocks

The additional fees going to the project fund on stocks are going to be used to boostrap 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 150x (eg. $GOOGL).
  1. 1.
    Opening a trade
    1. 1.
      0.05% --> project fund
    2. 2.
      0.05% --> dev fund
    3. 3.
      0.02% --> NFT bots (limit orders only)
  2. 2.
    Closing a trade
    1. 1.
      0.1% --> LPs
    2. 2.
      0.02% --> NFT bots (limit orders only)
Tier 2:
Tier 2 stocks are slightly more volatile stocks, where we allow up to 100x (eg. $FB).
  1. 1.
    Opening a trade
    1. 1.
      0.09% --> project fund
    2. 2.
      0.09% --> dev fund
    3. 3.
      0.02% --> NFT bots (limit orders only)
  2. 2.
    Closing a trade
    1. 1.
      0.18% --> LPs
    2. 2.
      0.02% --> NFT bots (limit orders only)
Tier 3:
Tier 3 stocks are the most volatile stocks, where we allow up to 50x (eg. $GME).
  1. 1.
    Opening a trade
    1. 1.
      0.15% --> project fund
    2. 2.
      0.15% --> dev fund
    3. 3.
      0.02% --> NFT bots (limit orders only)
  2. 2.
    Closing a trade
    1. 1.
      0.30% --> LPs
    2. 2.
      0.02% --> NFT bots (limit orders only)

Example

Opening fee

Let's say we use 250 DAI at 10x leverage on ETH/USD. The fee is applied to leveraged amount: 2,500 DAI.
  1. 1.
    We pay the Project Fund: 2,500 * (0.03/100) = 0.75 DAI --> 249.25 DAI.
  2. 2.
    Then we pay the Developer Fund: 2,492.5 * (0.03/100) = 0.74775 DAI --> 248.50 DAI.
248.50 DAI is the total collateral value of your newly opened trade, and therefore its total position size is 2,485 DAI.
We used a market order, so there was no NFT bot fee.

Spread

When opening this trade, the Chainlink oracle returned 3,003.19 for ETH/USD. The spread is then taken into account (0.1%), so the final open price is 3,006.19.
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 3,005.14. 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.

Closing fee

Let's say ETH/USD went up 1% from the open price, and we close the trade at 3,036.25. The pending profit (PnL) will be 10% of 248.50, our collateral, which is 24.85 DAI.
Now, we close the trade, and therefore pay the LP fee. Please note that the fees are always applied on the initial position size (without PnL).
2485 * (0.06/100) = 1.491 DAI --> 248.50 + 24.85 - 1.491 = 271.859 DAI.
Now let's also say that the trade earned 1.2 DAI from funding, and paid 0.5 DAI of rollover fees:
271.859 + 1.2 - 0.5 = 272.559 DAI
Finally, we apply the 0.5% closing fee on collateral + PnL.
272.559 - 0.5% = 271.19 DAI.
Therefore, you would receive 269.83 DAI to your wallet from our DAI vault after closing your trade.

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.