Trading

Fee Models

Traders have the flexibility to choose between two fee models based on their preferences:

1. Flat Fee Model:

   • Ideal for traders seeking predictable costs.

   • Trading fee is charged when opening a position on for both opening and closing order.

   • Settlement prices are sourced directly from Oracles.

   • Trading Fee Under Flat Fee Model：

   Trading Fee =2 × Position Size × Trading Fee Rate

$$Trading\ Fee\ Rate= Base\ Fee+\frac{The\ Size}{Max\ Trading\ Size}\times Price\ Impact$$

1. Profit Share Model:

   • Designed for traders who want to avoid upfront fees.

   • Trade opening and closing are free; instead, traders share a percentage of their profits with the platform.

   • Trading Fee Under Profit Share Model：

   Trading Fee = PNL@(P(T)) - PNL@(P_Close(T))

   • Profit Share Closed Price (P Close) formula:

$$P\ Close(T)=P(t)+\frac{1-Base\ Rate}{1+\frac{1}{abs(\frac{P(T)}{P(t)}-1)\times Rate\ Multiplier}+\frac{Bet\ Amount\times Position\ Leverage}{10^{6}\times abs(\frac{P(T)}{P(t)}-1)\times Position\ Multiplier}}\times(P(T)-P(t))$$

• where:

  • P(T): Perp price at time T.

  • P(t): Open price

  • Additional parameters and details are available here.

Funding Fees

Funding fees are charged hourly based on the imbalance between long and short positions for a specific trading pair:

• If there are more long traders, they pay funding fees to short traders, and vice versa.

• Detailed hourly funding rates can be found here.

Liquidation

Liquidation is triggered when the collateral value of an open position falls below the required threshold:

$$Collateral\ Value<Position\ Size\times Liquidation\ Buffer\ Level$$

• Liquidation buffer levels vary depending on the asset and are detailed here.

Auto Deleverageing

When trader’s aggregate realized pnl exceeded the maximum amount of the tokens in the vault, all the trading activities will be auto deleveraged at the level where the vault balance equal to exactly 0.