Fees
Traders
Traders pay the following fees to LPs(limWETH providers and individual LP positions)
Origination Fees -> Paid when a position is opened
Lending Interest -> Paid continuously every block
Force Close Fees -> Paid when a trader fails to replenish his/her interest deposit and as a result the position is force closed
Profit Share-> Paid only when a position incurs positive PnL. This is paid by the traders due to the adverse risk the LPs are undertaking when lending out against long tail assets.
Open Fee | Close Fee | Force Close Fees | Profit Share | |
---|---|---|---|---|
WETH/USDC | 0.1% of borrowed amount | 0% | 10% of leftover margin+ PnL | 0% |
Every other pair | 0.5% of borrowed amount | 0% | 10% of leftover margin+ PnL | 10% of total profit(0 when negative) |
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