Fees and Rebates

Open / Close Fees

The trading fee to open a position is 0.05% or 0.07% of the position size, similarly there is a 0.05% or 0.07% fee when closing the position. This applies for increasing the position size of an existing position and partially decreasing a position size as well.

If the trade increases the balance of longs and shorts then the fee would be 0.05%, otherwise the fee would be 0.07%.

Swap Fees

When you open a position with a pair that isn’t one of a OM pool pair, a swap will be performed at the contract level. The fees for a standard swap are either 0.05% or 0.07% of the swap amount.

If the trade increases the token balance in the pool, the fee will be 0.05%. Otherwise, the fee will be 0.07%.

For stablecoin swaps, the fees range from 0.005% to 0.02% of the swap amount.

If the trade increases the stablecoin balance in the pool, the fee is 0.005%; otherwise, it will be 0.02%.

Price Impact

When increasing or decreasing positions, there may be either a positive or negative price impact.

If the trade improves the balance of long and short positions or the token balance in the pool, a positive price impact will occur. Otherwise, there will be a negative price impact.

For positions, a positive price impact leads to a more favorable entry or exit price. For example, if you open a long position with a positive price impact, your entry price will be lower. Conversely, a negative price impact results in a less favorable entry or exit price, such as a higher entry price for a long position.

For swaps, a positive price impact increases the amount of tokens received, while a negative price impact reduces the amount.

The price impact values are displayed on the interface when you make a trade.

Price Impact Rebates

Under normal conditions, the long and short open interest should be relatively balanced, resulting in minimal price impact.

However, during periods of volatility, the open interest can become imbalanced, leading to a significant price impact. Price impact rebates are designed to mitigate this effect. Each market has a maximum price impact limit; if a trade closes with a price impact exceeding this limit, the excess impact can be claimed as a rebate after about 10 days.

For example, if a market's maximum price impact is set at 1%, and a trade closes with a 3% negative price impact, the difference of 2% would be claimable as collateral after a few days.

This delay is intended to prevent price manipulation. If manipulation is suspected, rebates are reviewed and only issued to accounts not involved in the manipulation.

It's important to note that this rebate applies only to closing or reducing positions; there is no maximum price impact for opening or increasing positions. For market increase orders, the price impact is displayed on the interface, allowing users to assess its acceptability. For limit orders, the order will only execute if the specified price, including any price impact, is met.

Funding Fees

While a position is open, you may incur either positive or negative funding fees.

The funding fee rate is displayed on the interface when you make a trade and will fluctuate over time depending on the balance between long and short positions.

If your position accrues positive funding fees, you can claim these fees by clicking the "Claim" button in the "Claimable Funding" box on the Trade page.

Adaptive Funding

Funding rates adjust gradually over time based on the ratio of long to short positions.

For instance, if the total long open interest is higher than the short open interest, the funding rate that longs pay to shorts will gradually increase until the difference falls below a certain threshold or reaches an upper limit, at which point the rate will stabilize.

If more shorts are opened or longs are closed, causing the short open interest to exceed the long open interest, the funding rate will decrease until the difference falls below the threshold.

If the short open interest continues to surpass the long interest, the funding rate will adjust in the opposite direction, with shorts paying longs a gradually increasing rate until the balance is restored.

Borrowing Fees

To prevent all liquidity from being reserved by users opening equal long and short positions at a minimal cost, a borrowing fee is applied to open positions. If there are more longs than shorts, longs will pay the borrowing fee, and vice versa for shorts. This fee also incentivizes the addition of more liquidity if it becomes fully reserved.

The borrowing fee rate is displayed on the interface when making a trade and changes over time based on the pool’s utilization percentage.

Network Fee

Opening or closing a position involves two transactions:

• The first transaction is sent by the user to request an action (open, close, deposit collateral, or withdraw collateral).

• The second transaction is executed by keepers who monitor the blockchain for these requests.

The cost of the second transaction is shown as the "Max Network Fee" on the interface. This fee is paid to the blockchain network when the order is executed and is overestimated to account for potential gas price increases. Any excess execution fee is refunded to your account after the transaction is completed. The degree of overestimation can be adjusted in the "Settings" menu in the top right corner of the page.