🕵️Guide to Trading Fees
Pinnako v1 launch features two liquidity engines:
Multi-asset liquidity pool: Powers Bitcoin (BTC) and Ethereum (ETH) perpetual contracts (perps).
Stablecoin liquidity pool: Powers Synthetic perps.
The following table outlines the different types of fees associated with each liquidity pool:
| Fee Type | Multi-asset LP | Synthetic |
|---|---|---|
Swap Fee | 0%-0.8% | N/A |
Open and Close Position Fee | 0.1% of position size | 0.1% of position size |
Borrow Fee | Utilization based (see formula below) | N/A |
Funding Fee | N/A | △OI * fixed rate (subject to forex pair) |
Position Fee (Open/Close Fees)
When you open or close a position, a fee of 0.1% of your position size is charged. For instance, if you use $250 worth of ETH at 10x leverage to long ETH/USD, the fee is calculated on your position size of $2,500. Hence, the fee would be $2,500 * 0.1% = $2.5.
Please note that a swap fee will be applied if you use an asset different from the intended one to open a position.
Funding Fee
The funding fee is the hourly fee you pay when your position is open as you are borrowing assets from the PLP. It's calculated as (assets borrowed) / (total assets in pool) * 0.01% per hour. This fee is charged on a second-by-second basis.
Premium Fee
In situations where the size of the long position is much larger than the size of the short position, long position holders are required to pay a premium to short position holders, and vice versa. Pinnoka trading incorporates these funding mechanisms to help balance out the degree of longs vs shorts.
Dynamic Spread (Price Impact)
Dynamic Spread, also 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 the direction of the trade (long/short). More details on the formula for this will be added soon.
Short-term Tax
To deter whales from making abnormal profits through price attacks in a short period, the cost of short-term abnormal gains has been increased. This increase in cost is meant to disincentivize such attack behavior.
Other Trading Settings
Further details on other settings related to trading are to be added soon.
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