💰 Fee Structure & Tokenomics

Trading Fees (Paid by Traders)

Base Fees

  • Open Fee: 0.35% of position size

  • Hourly Fee: 0.004% per hour (0.035% APR)

  • Liquidation: 100% of remaining collateral

  • Maximum Leverage: 15x

  • Maintenance Margin: 1%

Dynamic Fee Adjustments

Over-utilization Fees (When >90% of assets are used):

  • Base fees increase by 33%

  • Incentivizes new LP supply

  • Protects LP withdrawal ability

Overexposure Fees (When trading becomes imbalanced):

Imbalance %
Funding rate APR
Open Fee %

60%

40%

0.35%

70%

270%

0.67%

80%

500%

1.00%

90%

3,900%

2.25%

100%

7,300%

3.50%

Zero Fee Incentive: When overexposure >80%, the underrepresented side pays no hourly fees!

Fee Distribution

  • LPs: 90% of open fees + 100% of hourly/liquidation fees

  • Stakers: 10% of open fees (via LDC buybacks)

  • Protocol DAO: 0% (post-decentralization governance)

Risk Parameters

Position Limits

  • Minimum Position: $50 USD value

  • Maximum Position: Currently unlimited

  • Minimum Collateral: 100 units per asset type

  • Liquidation Threshold: 99% Loan-to-Value (1% maintenance margin)

Pool Safety Mechanisms

  • Utilization Cap: 98% maximum utilization

  • Imbalance Protection: Progressive fee increases

  • Emergency Pause: Protocol-wide safety switches

  • Oracle Protection: Multi-source price feeds with 2% deviation limits

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