Fees

Transaction Fees

The fee for opening and closing positions is currently set at 0.03% for 200x leverage，0.05% for 100x or lower leverage.

Transaction Fee = Transaction Value x fee rate

Funding Fees

YFX V4 implements the funding fee mechanism to balance the aggregated long and short positions. The funding fee is settled between traders and fund pools.

The funding fee is not settled every 8 hours, but the previous funding fees will be settled every time a transaction is made.

The funding fees on YFX are calculated in seconds on the blockchain, and the 1-hour estimated funding fee displayed on the trading page is the estimated 1-hour funding fee calculated using the real-time funding fees.

The 8 hours funding fee formula:

F: Funding Rate

P: Premium Index

I: Default Interest

$$F = P + clamp(I - P, -0.05\%, 0.05\%)\\ I = 0.01\% \\$$

$$F = \begin{cases}\\ \begin{aligned} P + 0.05\% \;\;\; & \text{When } P \le -0.04\%\\ 0.01\% \;\;\; & \text{When }-0.04\% \le P \le 0.06\% \\ P - 0.05\% \;\;\; &\text{When }P \gt 0.06\%\\ \end{aligned} \end{cases}$$

Users can find real-time funding rates in their positions, and they can view the funding profit and loss for a particular trade in their trade history. A positive funding rate means the user earned funding, while a negative funding rate means the user paid funding.

Execution Fees

There are two steps involved in opening/closing/editing a position: The first step is that the user sends a transaction request to the blockchain, including parameters like margin amount and leverage.

The second step is that Keepers observe the blockchain for the request, retrieve the price feed from the oracles, then execute the request. After the second step, the transaction is considered to be completely on-chain.

Therefore, when each transaction request is sent to the blockchain, an additional execution fee is required and paid to the blockchain network.

Currently, the execution fee on the Arbitrum blockchain is 0.0001 ETH per time.

Execution fees will be adjusted based on the gas fees for each blockchain over certain time periods.