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
Supply: 70% - To facilitate innovation behind the orderbook / gaslesss trading model.
60% - Liquidity Providers
10% - Execution Fund
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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