💲Fee Structure

FXDX charges following fees:

Trading Fee: 0% on opening and closing of any position.

Funding Fee: Since LPs are acting as counterparty against trader irrespective of market conditions, FXDX charges a funding fee per position to manage counterparty risk on behalf of LP to the trader based on the position health.

For a position in loss:

FXDX charges a flat funding fee of 0.15% of the position size during the lifetime of the trade irrespective of size.

For a position in Profit

FXDX operates on a socialized profit model, wherein the funding rate begins at 0.15% (and can go upto maximum ceiling of 1% depending on relative PnL of the position) and a fraction of the absolute profit (upto 5%) is shared among other profitable traders, while the remainder is directed to the liquidity provider pool (FLP).

This approach ensures that LPs can manage their counterparty risk even during challenging market conditions, while continuing to offer substantial liquidity.

Funding Fee are charged of the position size and Profit fees is charged on absolute PnL.

Rollover Fee: After opening a position, a trader accrues rollover fees per block interval, which updates on hourly period. The rollover fees is function of available liquidity per time interval. Hence, higher the amount of avaliable liquidity in use, the higher the rollover fees.

Rollover fees = (Assets borrowed) / Total asset in the pool * 0.01 % per hour.

Maximum Rollover fees = 0.01% per hour

Swap Fee: FXDX has a dynamic swap fees depending on the type of assets (stable and non-stable) and its effect on the pool. It can range from 0.01% to 0.6%.

FLP Fee: FXDX charges a dynamic fee on FLP mint/buy or burn/sell similar to Swap Fee. It can range from 0.1% to 0.6%.

Relative PnL = (PnL)/(Position Size)

The fees are subjected to change based on protocol health and asset listings.