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Fee Structure
Below is an overview of the fees on our platform each liquidity engine has its fee structure and LEXER's smart router would apply to the liquidity pool accordingly.
LEXER introduces two liquidity engines at the v1 launch:
- Multi-asset liquidity pool powers BTC and ETH perps
- Synthetic liquidity pool powers Forex (FX) perps
Fee Type | Multi-asset LP | Synthetic (Forex) |
|---|---|---|
Swap Fee | 0.16%-0.8% | N/A |
Open and Close Position Fee | 0.06% of position size | 0.012% of position size |
Execution Fee | Fixed at 0.001 ETH | Fixed at 0.001 ETH |
Borrow Fee | utilization based - see formula below | N/A |
Funding Fee | N/A | △OI * fixed rate subject to forex pair |
Liquidation Fee | 0.1% of position size | 0.1% of position size |
LEXER charges a base fee of 0.16% when users swap assets and the fee increases accordingly based on the asset availability and target weight in the pool. This mechanism maintains a healthy asset weight in the pool.
** Only applicable to the multi-asset liquidity pool
LEXER charges position fees when traders open and close positions. The position fee is at 0.06% of position and calculated as follows:
- Open Fee: 0.06% x Asset Price x Position Size
- Close Fee: 0.06% x Asset Price x Position Size
There is also an execution fee detailed below which is used to pay for the blockchain network costs.
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 execute 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.
After traders borrow pooled assets for positions, LEXER charges a borrow fee. The borrow fee is collected every hour. Long and short borrow fees are calculated separately on LEXER.
Borrow fee = Utilization * 0.01% per hour
** Utilization calculation as follows:
- Long utilization = global long assets position / assets in pool
- Short utilization = global short position / stablecoins in pool
** Only applicable to the multi-asset liquidity pool
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 cost you money
** Only applicable to the synthetic liquidity pool
The maintenance margin (MM) on the LEXER is 0.5%, and the liquidation fee is 0.1%. Therefore, 0.1% (if it exists) margin will be collected as the fee when a position is liquidated. The remaining margin after liquidation will return to traders.
Last modified 5mo ago