💸Fees and Spreads
Note: Fees and spreads are subject to change.
Swap Fees
The swap fee for DTX on Taiko is 0.3%, and additional fee tiers will be introduced after the deployment of V3.
Open/Close Fees
The opening and closing fees for a position are 0.05% of the position size. This fee also applies when increasing or decreasing the size of an existing position.
Spread
When opening or closing a trade, the oracle provides a price for the asset, such as 3,390.19. The spread is then considered, resulting in a slightly higher opening price for longing ETH, for example, 3,391.35.
Spread = Base Spread + Dynamic Spread
Dynamic spread is added on top of base spread.
Dynamic Spread = (Open Interest {long/short} + Position Size / 2) / Depth Factor {above/below}
The depth factor is different for each pair which represents the liquidity depth of the price moving higher or lower.
Please make note that the spread varies for each pair, with smaller pairs having lower liquidity resulting in a higher spread.
Funding Fees
There may be positive or negative funding fees while you have an active position.
When executing a trade, you can check the funding fee rate on the interface. Keep in mind that this rate will fluctuate depending on the balance between longs and shorts.
In case you receive positive funding fees for your position, you have the option to claim these fees by utilizing the "Claim" button found in the "Claimable Funding" box on the Trade page.
The Funding Fee Rate is calculated as follows:
Funding Fee Rate = (Funding factor) * (Open Interest Imbalance) ^ (Funding Exponent Factor) / (Total Open Interest)
Where Open Interest Imbalance is the delta of the long/short open interest.
Borrowing Fees
In order to prevent a situation where a user reserves all available liquidity by simultaneously opening equal long and short positions at a minimal cost, a borrowing fee is imposed on open positions. This borrowing fee serves as an incentive to encourage the addition of more liquidity in case all available liquidity is reserved for positions.
The borrowing fee rate can be found on the interface while executing a trade. It's important to note that the rate is subject to change over time based on the percentage of pool utilization.
The Borrowing Fee Rate is calculated as follows:
Borrowing Fee Rate = (Borrowing Factor) * (Open Interest Value + Pending PnL) ^ (Borrowing Exponent Factor) / (Pool Value)
Execution Fees
Opening or closing a position involves two transactions:
The user initiates the first transaction to perform actions such as opening, closing, depositing collateral, or withdrawing collateral.
Keepers monitor the blockchain for these requests and carry out the requested actions.
The confirmation box displays the cost of the second transaction as the "Execution Fee." This fee is paid to Blast when the order is executed. It is intentionally set higher than the actual cost to account for potential increases in gas prices. Any excess execution fee is refunded to your account once the order is executed.
At present, the Execution Fee stands at a fixed rate of 0.0003 ETH. However, it will be modified as necessary to align with improved conditions.
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