# Protocol Fee Structure

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.