šŸ—æFee Structure

Details for Lexer V2 Fees

Each liquidity engine has its own fee structure and LEXER's Smart Router will automatically route trades to the proper liquidity.

The table below provides an overview of the fees on our platform:

Fee TypeMulti-Asset LPsSynthetic (Forex)

Swap

0.01%-0.8%

N/A

Open / Close Position

0.1% of position size

0.1% of position size

Execution (Market)

Fixed at 0.001 ETH

Fixed at 0.001 ETH

Execution (Limit)

Fixed at 0.001 ETH

Fixed at 0.001 ETH

Borrow

Utilization based (see formula below)

Utilization based (see formula below)

Funding

OI based (see formula below)

OI based (see formula below)

Dynamic

Borrow Fee +/- Funding Fee (see formula below)

Borrow Fee +/- Funding Fee (see formula below)

Liquidation

5 USD

5 USD

Bid-Ask Spread

N/A

0.0001%

Swap Fees

LEXER charges a base fee of 0.01% whenever users swap assets. The fee increases accordingly based on the asset availability and target weight in the pool. This mechanism is designed to maintain a healthy asset weight in the pool.

Swap fees are only applicable to the multi-asset liquidity pool.

Open and Close Position Fees

LEXER charges position fees when traders open and close positions. The position fee is at 0.1% of the position and is calculated as follows:

  • Open Fee: 0.1% x Asset Price x Position Size

  • Close Fee: 0.1% x Asset Price x Position Size

Execution Fees

There are two transactions involved in opening / closing / editing a position:

  1. User sends the first transaction to request open / close / deposit collateral / withdraw collateral.

  2. Keepers observe the blockchain for these requests then executes them.

The cost of the second transaction is displayed in the confirmation box as the execution fee. This network cost is paid to the blockchain network.

Borrow Fees

Once traders borrow pooled assets for their positions, LEXER will charge a borrow fee that is collected hourly.

The borrow fees for long and short positions are calculated separately on LEXER's multi-asset pool. Specifically, the borrow fee for long positions applies to volatile assets, while the borrow fee for short positions pertains to stable assets.

In the case of the Synthetic pool, both long and short positions are subject to the borrow fee for single stable assets.

Utilization=(BorrowedĀ amount)(TotalĀ assetĀ amountĀ inĀ pool)BorrowRate=Max(Utilizationāˆ—maxBorrowRate,minBorrowRate)Utilization =\frac{(Borrowed\ amount)}{(Total\ asset\ amount\ in\ pool)} \newline BorrowRate = Max(Utilization * maxBorrowRate, minBorrowRate)
AssetminBorrowRatemaxBorrowRate

USDC

0.005%

0.025%

USDT

0.005%

0.025%

BTC

0.008%

0.04%

ETH

0.008%

0.04%

ARB

0.01%

0.05%

Funding Fees

The Funding Fee adds value to the position on the less heavily utilized side (e.g. if most people are long - the trader will get paid for maintaining a short position) - and conversely, this will cost the position more on the more heavily utilized side (e.g. going long when most users are already long).

It will naturally change based on other traders 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 farther away (that is, it will become harder to liquidate) and your position will be worth more, and the opposite if you trade on the more popular side.

Specifically, on the Lexer trading UI:

  • A green value means you earn fees from the position

  • A red value means the position costs you fees.

skewScale=lpTvlāˆ—maxLeverageāˆ—multiplertokenOIDiff=ABS(longOIāˆ’shortOI)fundingRatedaily=OIDiffāˆ—maxFundingVelocitytoken/skewScale)skewScale = lpTvl * maxLeverage*multipler_{token}\\ OIDiff = ABS(longOI - shortOI)\\ fundingRate_{daily} = OIDiff * maxFundingVelocity_{token}/skewScale)
assetsmultiplermaxFundingVelocityFunding APR (example: at 20% skew)

BTC

50

9

26.28%

ETH

40

9

32.85%

ARB

15

36

350.40%

EUR

100

1

1.46%

GBP

125

1

1.17%

AUD

150

1

0.97%

CNY

100

1

1.46%

JPY

100

1

1.46%

CAD

100

1

1.4

Dynamic Fees

The dynamic fee are a combination of the funding fee and the borrow fee. If the funding fee exceeds the borrow fee, the dynamic fee will be reduced to 0%. This means that users can maintain their positions without incurring any fees (free leverage trading!).

IF LongOI > ShortOI

IF LongOI < ShortOI

Liquidation Fees

Accumulating borrowing fees can gradually narrow the trade liquidation prices.

When the remaining asset (collateral - losses - borrow fee) in your position falls below 1% of its size, the keeper will initiate liquidation. A liquidation fee of 5 USD value will be charged by the keeper.

After liquidation, any remaining collateral will be returned to the traders.

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