Fee Structure
Summary of all kinds of fee on DIPX
Trading Fee
The cost to open/close a position is 0.1% of the position size. (after leverage). The Fee will be charged with DLP/SLP-XXX.
SLP-XXX Trading is additionally pre-charged 0.01 eth or a similar value of other crypto assets as a possible liquidation execution transaction Gas fee for each opening position. which doesn't apply to DLP Trading.
The orders with Limit Price and Trigger Price are pre-charged 0.01 eth or a similar value of other crypto assets as a late execution transaction Gas fee for each order.
70% of the Trading Fee is distributed to LP as a yield.
Funding Fee
There is a "Funding Fee" that is deducted at the start of the time when the trader opens a position. The fee per hour will vary based on the skew of the market open positions. The Skew, a parameter to show the balance of open interest in DIPX, is defined as the total amount of outstanding long and short positions expressed as a percentage.
The funding fee is calculated as:
Funding fee/hour= （Position size-Collateral）*factor *base fee
Base fee=0.001%
The factor will be changed according to the change of the skew as follow:
When skew=50%, the heavier side factor=1, while the lighter side factor=1;
When 50%<skew<=60%, the heavier side factor=1.2, while the lighter side factor=0.8;
When 60%<skew<=70%, the heavier side factor=1.4, while the lighter side factor=0.6;
When 70%<skew<=80%, the heavier side factor=1.6, while the lighter side factor=0.4;
When 80%<skew<=90%, the heavier side factor=1.8, while the lighter side factor=0.2;
When 90%<skew<=100%, the heavier side factor=2.0, while the lighter side factor=0;
Whenever the market is imbalanced in the sense that there is more open interest on one side, LP holders take on the market risk, so 70% of the funding fee is paid to the LP of your trade to make up for the delta risk borne by liquidity providers. The factor in the formula of funding fee rate is designed to incentivize the balance in the open interest on each side of the market, positions on the heavier side of the market will be charged a higher rate of funding fee, while positions on the lighter side will be charged a lower rate of funding fee. The funding fee rate will be computed as a percentage charged overtime against each position’s size and paid out of its margin. Hence funding fee affects each position's liquidation point.
Gas Fee
There are two transactions involved in opening/closing/editing a position:
Users send the first transaction to request open/close / deposit collateral / withdraw collateral
The platform observes the Outstanding positions for liquidation and then executes them.
Fee of Liquidity Deposit and Withdraw
All deposited or withdrawn assets to inject liquidity into or remove liquidity from the Isolated Pool are charged free, but 0.04% of the total amount will be charged by DIPX while injecting liquidity into or removing liquidity from the Mixed Pool.
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