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.

• LVL accelerated vesting fee: 60% tax in USDT

  • Users may pay fees in USDT in order to vest and receive preLVL immediately.

  • To vest and claim 1 preLVL token immediately, users will need to pay a 60% tax in USDT.

  • Note: The taxed USDT will be distributed equally, with 50% to the DAO, and 50% to the LLP.