Protocol Revenue

Fee Collection

The platform generates revenue through fees charged for its usage. These fees take various forms, including:

• Position fee for perpetual trading

• Liquidation fee

• Dynamic borrowing fee (interest rate for leveraged/perpetual trading)

• Swap fee

• LLP minting and burning fee (LLP = Level Liquidity Pool)

• Accelerated vesting fee (preLVL vesting) (Note: This fee will be distributed equally, with 50% to the DAO and 50% to the LLP.)

For more information, see Protocol Fee Structure

Fee Distribution

Revenue is distributed from fees collected on the platform. These fees are routed as follows:

• LLP Fees = 45%

• LVL & LVL/USDT LP Stakers = 10%

• DAO Treasury = 30%

• LGO Stakers = 10%

• Reserved for Development = 5%

Proposals passed by the Level DAO can change protocol fee parameters and distribution.