# 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. --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://docs.level.finance/protocol-fee-structure.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.