💸Indices
Trade SPY and QQQ with up to 100x leverage.
Types of Fees
6bps
No closing fees.
Targets 5% APR within normal (non-skewed) market conditions, assuming 50% utilization. Goes up or down based on long-short skew imbalance and utilization changes.
1bp avg. spread
Opening Fee: 0.06% * 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.
Fixed Spread: 0.01% Avg spread
To account for volatility, we charge a 0.02% spread (one way only) to account for any 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 while closing.
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- 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
Utilization Ratio= Asset Utilization
Asset Utilization= USDC Borrowed / USDC Limit for the Specific Asset.
Skew Ratio= Long Open Interest for the specific asset /( Long Open Interest + Short Open Interest for the specific asset)
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