Trading Mechanisms & Fees


As described in the previous section, your entry and exit liquidity comes from the shared liquidity pool provided by liquidity providers. Since all trades are backed against a single pool it allows for extremely efficient market making of exotic/uncommon trading pairs. Someone trading EUR/USD will face the same top tier execution as someone trading FTM/USD even if the EURUSD trader is the only one trading this pair on the market.

Trading Fees

Trade fees apply on different pairs to incentivize more trades. At the time of writing, fees are designed to be 0.1% for opening and closing based on the size amount. However, we want this range to be from 0.01%-0.5% to be more flexible for incentives and taken as a protocol fee and distributed to holders. Liquidations also range from 80% drawdown in which 20% is taken as a protocol fee and distributed to holders. Funding payments occur at a variable rate by the second. Some trading pairs which are designed to be short term trades or highly volatile trades could have higher than average interest payments. These payments are paid to LP's entirely for the market making/counterparty risk they take on.


*IMPORTANT* Pricing on the frontend for charting and pre-settlement pricing is only a reference point. Pricing may slightly differ as trades are executed and at the time of trade settlement finality! More details below. Our model follows the similar oracle systems provided and used by MCDEX, CAP, and GNS. Once trades are opened they are picked up by the oracle and priced accordingly. This is a 2 step process in which the users order is active once the oracle has priced the users trade in the 2nd transaction done automatically by the protocol. If the order cannot be priced due to high utilization or markets being closed, then no PnL is calculated and the margin + fee is sent back to the trader.