# Fees and Spread

### Introduction <a href="#introduction" id="introduction"></a>

In line with industry standard, **fees are calculated on the value of the total position size** (leverage x collateral). It is also worth noting that spread and price impact are only relevant to opening a trade and not to closing.

### Fees Breakdown <a href="#fees-breakdown" id="fees-breakdown"></a>

The "Market/Limit" fee below goes to stakers.

Additionally, the referrer rewards are always taken from the "Governance Fund" fees.

Finally, while all trades are open, they may pay a borrowing fee, which goes into the USDT vault.

### Cryptos (Major) <a href="#cryptocurrencies" id="cryptocurrencies"></a>

Spreads on BTC/USD are fixed at 0.01%, and dynamic depending on the price impact formula on all other pairs.

{% tabs %}
{% tab title="Opening Trade" %}
**Opening a trade: 0.08%**

* 0.03% -> Governance Fund
  * 0.015-0.02% -> Referrer
* 0.046% ->  Staking
* 0.004% -> Market/Limit
  {% endtab %}

{% tab title="Closing Trade" %}
**Closing a trade: 0.08%**

* 0.046% -> Staking
* 0.03% -> USDT Staking
* 0.004% -> Market/Limit
  {% endtab %}
  {% endtabs %}

### Runes (Major) <a href="#commodities-tier-1" id="commodities-tier-1"></a>

This category currently only includes DOG.&#x20;

{% tabs %}
{% tab title="Opening Trade" %}
**Opening a Trade (0.20% Total Fee)**

* **0.075%** -> Governance Fund
* **0.0375-0.05%** -> Referrer
* **0.115%** ->  Staking
* **0.01%** -> Market/Limit
  {% endtab %}

{% tab title="Closing Trade" %}
**Closing a Trade (0.20% Total Fee)**

* **0.115%** -> Staking
* **0.075%** -> USDT Staking
* **0.01%** -> Market/Limit
  {% endtab %}
  {% endtabs %}

### Cryptos (Minor) <a href="#commodities-tier-2" id="commodities-tier-2"></a>

This category includes all other cryptos.&#x20;

{% tabs %}
{% tab title="Opening Trade" %}
**Opening a Trade (0.5% Total Fee)**

* **0.24%**  -> Governance Fund
* **0.184%** ->  Staking
* **0.026%** -> Market/Limit
  {% endtab %}

{% tab title="Closing Trade" %}
**Closing a Trade (0.5% Total Fee)**

* **0.184%** ->  Staking
* **0.24%** -> USDT Vault
* **0.026%** -> Market/Limit
  {% endtab %}
  {% endtabs %}

A **Market order** refers to when an order is manually opened and/or closed, and a **Limit order** refers to when an order is opened by a limit or stop limit, and/or closed by a take profit, stop loss, or a liquidation. Please note that a trade can be opened manually and closed via a take profit for example, opened via a stop limit and closed manually, and so forth. The open and close fees remain the same for the trader, but the revenue allocation differs depending on how a trade was opened and closed.

### **Lifecycle of a Trade** <a href="#lifecycle-of-a-trade" id="lifecycle-of-a-trade"></a>

#### Opening Fee <a href="#opening-fee" id="opening-fee"></a>

Let's say we use **250 USDT** at **100x** leverage to long DOG/USD. The fee is applied to leveraged amount: **25,000 USDT**.

25,000 \* (0.20/100) = **50 USDT fee**

**200 USDT** is the total collateral value of your newly opened trade, and therefore its total position size is **20,000 DAI**.

#### **Fixed Spread** <a href="#fixed-spread" id="fixed-spread"></a>

When opening a trade our oracle returns a price for the asset, for instance 3,003.19. The spread is then taken into account (0.16%), so the open price would be **3007.99** before consideration of the dynamic spread (see section below).

That is: 3,003.19 + (3,003.19 \* 0.16 / 100) = **3007.99**

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.

#### Dynamic Spread <a href="#dynamic-spread" id="dynamic-spread"></a>

Dynamic Spread, formerly known as 'Price Impact' is added on top of the fixed spread (if the pair has one). It depends on the open interest of the pair, the position size of the trade being opened, and on the direction of the trade (long / short).

***Dynamic Spread (%) =** (Open interest {long/short} + New trade position size / 2) / 1% depth {above/below}.*

#### &#x20; <a href="#eth-usd-example" id="eth-usd-example"></a>


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