💸Forex
Trade 10+ FX pairs with the most competitive spreads and fees.
Types of Fees
1 bp - 5 bps, based on long-short skew
No closing fees !
10% on USD-JPY, 0% for others.
Based on skew and utilization
Zero Spreads for EUR-USD, USD-JPY, and GBP-USD. 1bp spread (across opening and closing) for other pairs.
Dynamic Opening Fee: [0.01% - 0.05%] * Position Size
Opening fee applies on the total position size of a leveraged trade. 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, e.g $0.3 (0.01% of $3,000). $99.7 is now the collateral value of the trade.
Dynamic Opening Fee: A Skew-Adjusted Mechanism
In an effort to optimize the fee structure for market participants, we have introduced a skew-adjusted dynamic opening fee. This fee is designed to incentivize balanced trading and mitigate systemic skew. Specifically, traders on the less skewed side of the market will benefit from discounted fees.
The fee is determined according to skew:
1
0
5
1
0.9
0.1
4.5
1.5
0.8
0.2
4
2
0.7
0.3
3.5
2.5
0.6
0.4
3
3
0.5
0.5
3
3
0.4
0.6
3
3
0.3
0.7
2.5
3.5
0.2
0.8
2
4
0.1
0.9
1.5
4.5
0
1
1
5
Fixed Spread: 0.01%
Forex markets, especially for major pairs are generally very liquid, while being less volatile than the crypto market. Hence, unlike cryptocurrencies (where the spread is dynamic), we only charge a fixed spread of 0.01% on certain forex assets, to account for any minor (and unfavorable) price movements that occur right between a trade order being sent, and it being executed onchain. This spread is only charged upon opening an order, not closing.
Zero Spreads
Pay absolutely no spreads on top 3 FX Pairs (EUR-USD, USD-JPY and GBP-USD).
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 * Blended Skew Ratio))-1]
Base Fee: A fixed fee at 0.0015% / 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
Blended Skew = 0.75 *Category Skew + 0.25* Asset Skew
Long Asset Skew Ratio= Long Open Interest for the specific asset /( Long Open Interest + Short Open Interest for the specific asset)
Long Category Skew Ratio= Long Open Interest for the whole category/( Long Open Interest + Short Open Interest for the whole category)
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