Documentation Index
Fetch the complete documentation index at: https://docs.parquet.exchange/llms.txt
Use this file to discover all available pages before exploring further.
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 of 10 bps (0.1%) applied to all trades. Markets also support a favorable fee rate of 5 bps (0.05%) — 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 (10 bps) |
| Open long when long OI < short OI | Reduces imbalance | Favorable rate (5 bps) |
| Close long when long OI > short OI | Reduces imbalance | Favorable rate (5 bps) |
| Close long when long OI < short OI | Increases imbalance | Base rate (10 bps) |
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.
- Funding accrues continuously and is settled when you close or modify your position.
- A keeper cranks the funding rate at regular intervals to update the accrued amounts.
- Funding is capped at 10 bps per hour — even in extreme imbalance, the hourly cost never exceeds 0.1% of notional.
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.Liquidation fee
When a position is liquidated, 50 bps of the remaining collateral is paid to the liquidator (the keeper or whoever first lands the permissionlessliquidate instruction). The reward is capped per call via a runtime argument; see Liquidations.
Fee distribution
All fees flow through a multi-step distribution process:- Accrue — Each trade splits the fee at the pool level. The LP share is added directly to pool value (increasing LP token price). The remainder accumulates as pending non-LP fees.
- Sweep — A permissionless transaction moves pending fees from the pool to the fee distributor.
- Distribute — A permissionless transaction splits swept fees to stakers, the treasury, and the referral reward pool.