💸Commodities
Avantis offers WTI, Brent, Gold and Silver. More commodities coming soon!
Types of Fees
6-10bps
No closing fees.
No loss protection incentives.
Targets 10% APR within normal (non-skewed) market conditions, assuming 30% utilization. Goes up or down based on long-short skew imbalance, utilization changes and market conditions (e.g volatile margin fees on Oil in April 2026).
Variable, based on orderbook depth.
Opening Fee: 0.06- 0.1% * Position Size
Opening fee applies on the total position size of a leveraged trade. An an example, if a trader puts up $100 of collateral at a 30x leverage, then the total position size would be $3,000. The opening fee would be deducted from the position size, i.e $1.8 (0.06% of $3,000). $98.2 is now the collateral value of the trade.
Dynamic Spread
Spreads are calculated dynamically based on orderbook depth of each asset. Most RWAs have a very liquid global orderbook, which is why spreads are generally very favorable.
Dynamic Margin fee
A margin fee applies to the collateral value of a position each block (and is displayed in a hourly format on the website). This is to make sure traders do not borrow most of the vault's capacity, and also leave room for other traders to take part in trading against the vault. It is also dependent on how skewed the positioning is in a particular asset, with a higher fee for traders on the skewed side (eg if skew is 90-10 long-short, longs will pay a higher margin fee). Hence, it is both a risk management measure, as well as a fair parameter that allows for several traders to utilize the platform.
The formula for determining the fee at any moment will be based on several factors. It can be summed up as:
Hourly Margin Fee = Base Fee* [(1/(1- Blended Utilization ratio * Skew Ratio))-1]
Base Fee: A fixed fee that varies per pair based on each pair's volatility. E.g, Base fee for Gold is 0.0025%/hour and Silver is is 0.005% / hour
Blended Utilization= 0.75 *Category Utilization + 0.25* Asset Utilization
Asset Utilization= USDC Borrowed / USDC Limit for the Specific Asset
Category Utilization= USDC Borrowed / USDC Limit for the Defined Category
Long Skew Ratio= Long Open Interest for the specific asset /( Long Open Interest + Short Open Interest for the specific asset)
Example: The open interest on long positions for Silver is $10,000, and open interest for short positions for Silver is $500, while blended limit utilization is 20%, ie 0.2. In this case, the long short ratio is = $10,000 / (10,000 + 500) = 95% long, 5% short. Clearly, we do not want the protocol to always be in this state. Hence, the margin fees paid by longs would be 10.27% annualized (0.12 bps/hour), while shorts would only pay 0.44% annualized (0.005 bps/hour). This makes going long (both for new positions and existing positions) expensive, and urges traders to close out their positions. On the other hand, shorting is cheap! Traders are encouraged to take the opposing view, bringing skew ratio back to healthy levels
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