Fees
Takers pay ~1% to open a position. This goes to makers, insurance, and (optionally) the market creator.
| Fees | Default | Range | Description |
|---|---|---|---|
| Position Opening | 1% | ||
| Dynamic LP | 0.75% | 0-5% | Distributed to makers servicing active liquidity |
| Creator | 0% | 0-5% | Paid to market creator |
| Insurance | 0.25% | 0-5% | Replenishes market insurance fund |
| Ongoing | |||
| Utilization | Var. | 0-5% | Paid by takers to makers based on utilization |
| Liquidation | 1% | 0-50% | Paid to liquidators |
Details
Fees are charged when you open a taker position, as a percentage of notional value.
1. Dynamic LP Fee
The main trading fee. Goes to makers providing liquidity in active price ranges. Adjusts based on liquidity depth and volatility.
2. Creator Fee
A fee paid to the market creator. Currently set to 0% since all markets are created by Strobe Labs.
3. Insurance Fee
Replenishes the market's insurance fund, which covers bad debt if liquidations fail. See Insurance Model.
4. Utilization Fee
Paid continuously by takers to makers, based on how much of the available liquidity is being used. When utilization is low, the fee is low. When utilization is high, the fee increases to attract more makers.
Liquidation Fee
1% of notional, paid to the liquidator. See Liquidations & ADL.