> For the complete documentation index, see [llms.txt](https://docs.unlimited.trade/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.unlimited.trade/protocol/or-trading/fees.md).
# Fees
### Trading (Open & Close) Fees
Open and close fees on Unlimited Leverage are dynamically calculated depending on **your monthly trading volume** (for open and increase position size). As your volume increases, the fees decrease, so with continued usage, you pay less for each trade.
| Tier | 30 Day Volume | Fee (open & close) |
|---|
| 0 | < $1,000,000 | 0.07% & 0.07% |
| 1 | ≥ $1,000,000 | 0.06% & 0.06% |
| 2 | ≥ $5,000,000 | 0.05% & 0.05% |
| 3 | ≥ $10,000,000 | 0.04% & 0.04% |
| 4 | ≥ $25,000,000 | 0.03% & 0.03% |
| 5 | ≥ $100,000,000 | 0.02% & 0.02% |
| VIP | ≥ $1,000,000,000 | 0.01% & 0.01% |
#### **Fees Distribution**
1. Supply: 70% - To facilitate innovation behind the orderbook / gaslesss trading model.
60% - Liquidity Providers
10% - Execution Fund
2. Protocol: 30% - To facilitate early stage growth in the protocol and encourage a wave of skilled, enthusiastic community contributors to accelerate product iterations and wider ecosystem and community growth.
18% - $UWU stakers
12% - Contributor Fund
Overtime this 12% will be reduced and UWU stakers will receive the full 30% fees that are directed to the protocol.
### Funding Fees
Funding fees are a common feature on trading platforms, designed in order to **incentivize traders to take the less populated (by open interest) side of a trade**. In other words, if **Longs > Shorts in open interest**, then longs will pay shorts a funding fee. That same is true vice versa. This **encourages ****healthy market participation** which drives volume.
Funding fees are paid **every block and are pro rata to the position size**.
### Borrow Fees
A Borrow fee is another common fee applied to trading platforms, and is **applied to all open positions**. This fee is implemented to **cover the cost of upkeep of the position**, and is deducted from the collateral **every block**.
Initially, **Unlimited Leverage will set the ****Borrow Fee to 0%**, and will adjust the value depending on the LP Performance. \
\
LPs receive **100%** of the **borrow fees**.
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