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Protocol Fees

Leverage Trading Fee​

  • Users pay a position fee when opening / closing a trade.
  • Position fees follow a linear function ranging between 0.05%. Position fees are designed to encourage traders to think of more trade ideas whenever possible.
  • Traders can trade assets with lower utilization for lower fees.

Borrowing Fee​

There is a "Borrow Fee" that is deducted on an hourly basis. This fee represents the payment made to the counterparty of your trade. The exact fee per hour varies depending on the utilization and is calculated as (borrowed assets) / (total assets in the pool) * 0.005%. The "Borrow Fee" for both long and short positions is displayed below the swap box.

Liquidation Fee​

!!! Liquidation Fee: 2 USDT

A liquidation process is triggered if the asset prices move adversely against the user. In this process, the liquidation contract will automatically close (liquidate) the user's position to prevent further losses.

Handling of Fees and Remaining collateral:​

  • If the user's current collateral, minus the closing fees and liquidation fees, results in a value less than zero, the user will not be returned any collateral.
  • Conversely, if the user's current collateral, after deducting closing fees and liquidation fees, remains greater than zero, the user will be returned the surplus collateral.

Slippage​

  • While there are no price impacts for trades, there can be slippage due to price movements between when your trade transaction is submitted and when it is confirmed on the blockchain. Slippage is the difference between the expected price of the trade and the execution price, this can be customised in the "Settings"
  • Additionally, all other fees will be transparently shown before a user executes a trade.

$HIKLP Fees​

  • Depositors pay a fee when depositing / withdrawing from the $HIKLP pool. $HIKLP Minting & Burning Fees range from 0.0% to 0.5%.
  • Depositors engaging in the minting of $HIKLP tokens are subject to a dynamic fee structure, influenced by the supply and demand dynamics within the $HIKLP pool.