Protocol Fee Structure
Our fee structure is consistent across all chains where LEVEL is deployed.
See below for a full breakdown of all fees incurred through the usage of the platform:
- Position fee for perpetual trading: 0.05% of position size (open/close)
- Liquidation fee: $5
- Dynamic borrowing fee (interest rate for leveraged/perpetual trading): Traders pay a borrowing fee every hour. The fee is calculated dynamically based on the asset utilization rate:
Borrowing fee (per hour) = (assets borrowed) / (total assets in pool) * 0.01%
- Maximum borrowing fee: 0.01% per hour (at 100% utilization)
- Swap fee: ranging from 0% to 0.65%
- The base swap fee equals 0.25% for non-stablecoin swaps (i.e. USDT>ETH, or BTC>BNB)
- Note that LEVEL incentivizes swapping assets that are underrepresented (in terms of pool weight) by dynamically reducing or increasing the swap fee.
- LP minting and burning fee: 0% to 0.6%
- The base LP minting and burning fee is equal to 0.2%
- Each asset's fee is dynamically determined to incentivize actions that bring the actual weight closer to the target weight.
- The minting and burning fee decreases whenever adding/removing liquidity would bring the actual weight closer to the target weight, and vice versa.