Fees and Spread
Introduction
In line with industry standard, fees are calculated on the value of the total position size (leverage x collateral). It is also worth noting that spread and price impact are only relevant to opening a trade and not to closing.
Fees Breakdown
The "Market/Limit" fee below goes to $BTP stakers.
Additionally, the referrer rewards are always taken from the "Governance Fund" fees.
Finally, while all trades are open, they may pay a borrowing fee, which goes into the USDT vault.
Cryptos (Major)
Spreads on BTC/USD are fixed at 0.04%, and dynamic depending on the price impact formula on all other pairs.
Opening a trade: 0.08%
0.03% -> Governance Fund
0.015-0.02% -> Referrer
0.046% -> BTP Staking
0.004% -> Market/Limit
Inscriptions (Major)
This category currently only includes SATS. Spreads on all minor commodities are fixed at 0.16%.
Opening a Trade (0.20% Total Fee)
0.075% -> Governance Fund
0.0375-0.05% -> Referrer
0.115% -> BTP Staking
0.01% -> Market/Limit
Inscriptions (Minor)
This category includes all other ordinals. Spreads on all minor inscriptions are fixed at 0.32%.
Opening a Trade (0.5% Total Fee)
0.24% -> Governance Fund
0.184% -> BTP Staking
0.026% -> Market/Limit
A Market order refers to when an order is manually opened and/or closed, and a Limit order refers to when an order is opened by a limit or stop limit, and/or closed by a take profit, stop loss, or a liquidation. Please note that a trade can be opened manually and closed via a take profit for example, opened via a stop limit and closed manually, and so forth. The open and close fees remain the same for the trader, but the revenue allocation differs depending on how a trade was opened and closed.
Lifecycle of a Trade
Opening Fee
Let's say we use 250 USDT at 100x leverage to long SATS/USD. The fee is applied to leveraged amount: 25,000 USDT.
25,000 * (0.20/100) = 50 USDT fee
200 USDT is the total collateral value of your newly opened trade, and therefore its total position size is 20,000 DAI.
Fixed Spread
When opening a trade our oracle returns a price for the asset, for instance 3,003.19. The spread is then taken into account (0.16%), so the open price would be 3007.99 before consideration of the dynamic spread (see section below).
That is: 3,003.19 + (3,003.19 * 0.16 / 100) = 3007.99
Please make note that the spread is different for each pair - smaller pairs with lower liquidity have a higher spread. It is displayed on the front end next to the Price in the Trade Parameters box.
Dynamic Spread
Dynamic Spread, formerly known as 'Price Impact' is added on top of the fixed spread (if the pair has one). It depends on the open interest of the pair, the position size of the trade being opened, and on the direction of the trade (long / short).
Dynamic Spread (%) = (Open interest {long/short} + New trade position size / 2) / 1% depth {above/below}.
Last updated