Fee & risk parameters at a glance
| Parameter | Value |
|---|---|
| Open / close fee — base | 0.1% of notional |
| Open / close fee — favorable (reduces OI imbalance) | 0.05% of notional |
| Funding rate cap | 300% APR (≈0.82% / day) |
| Liquidation fee | 20% of remaining equity at liquidation (capped at equity, split 50/50 liquidator / insurance fund) |
| Initial margin | 50 bps (0.5%) of notional → 200× max openable, venue-wide |
| Maintenance margin ratio (MMR) | 40 bps (0.4%) venue-wide |
| Open-interest cap per market | 500K off-hours ($100K off-hours for ASML, COST, RIVN, IBM, DELL) |
| Max leverage (tiered by position size) | 200× → 10× — the same tiers apply RTH and off-hours (200× on the smallest tier, set by the 50 bps initial margin) |
| Minimum collateral | $10 USDC |
| Fee distribution | LP 50% / staker 31.25% / treasury 12.5% / referral 6.25% |
Position fees
A fee is charged when you open or close a position. The fee is calculated as a percentage of the position size. Each market has a base fee rate applied to all trades. Markets also support a favorable fee rate — a lower rate applied to trades that reduce the open interest imbalance between longs and shorts. This incentivizes balanced open interest across the protocol.| Action | OI effect | Fee rate applied |
|---|---|---|
| Open long when long OI > short OI | Increases imbalance | Base rate |
| Open long when long OI < short OI | Reduces imbalance | Favorable rate |
| Close long when long OI > short OI | Reduces imbalance | Favorable rate |
| Close long when long OI < short OI | Increases imbalance | Base rate |
Funding rate
The funding rate is a periodic payment between long and short position holders, based on the open interest imbalance.- The side with larger aggregate open interest pays the other side — and the lighter side receives funding.
- Funding accrues continuously and is settled when you close or modify your position.
- The funding rate is updated automatically at regular intervals.
- The funding rate is capped at 300% APR (≈0.82% per day), enforced on-chain.
Borrowing fees
Borrowing fees are a time-based cost proportional to your position size and pool utilization. They accrue continuously from the moment you open a position until you close it. Borrowing fees are charged on position close, margin update, or liquidation.Fee distribution
All fees flow through a multi-step distribution process:- Accrue — Each trade splits the fee at the pool level. The LP share goes to liquidity providers (increasing the value of their LP tokens). The remainder accumulates as pending non-LP fees.
- Distribute — The remaining collected fees are periodically distributed to stakers, the treasury, and the referral reward pool.