Goal: A portion of the Treasury's surplus is used to pay trader opening fees. Through this, it promotes traders' transactions and maximizes the profits of USDC stakers.
Accumulation Detail
If the treasury collateral ratio exceeds 110% at the end of each epoch, 20% of the treasury is reserved to an opening fee incentive vault.
The opening fee is fully paid by the incentive vault within the balance range within the vault. Traders can check the balance of the incentive vault and whether fee support is available on FEES section.
Amount to Reserve = Staked USDC Amount x (Treasury Collateral Ratio - 110%) / 100 x 20% / 100
Opening Fee | Closing Fee | Update Fee
Goal: The opening fee is used to operate the service, and the closing fee is distributed to stakers.
Distribution
Opening Fee: ecosystem + Development + Referral
Closing Fee: 50% USDC Stakers + 50% CNG stakers
Updating SL, TP & Collateral: Development
Spread: The spread reflects the assessed riskiness of the asset based on the market's liquidity and trading volume; spread increases with higher price volatility and decreases with lower volatility. (Event : 50% off)
Network Fee
Goal: Blockchain usage fees received for performing transactions on trader behalf. Traders can trade and pay fees with a single USDC token without having to hold ETH to pay gas fees.
Funding Fee
Cryptocurrencies (Major): 0.0024%
Cryptocurrencies (Minor): 0.0048%
Forex (Major): 0.0012%
Goal: Reduce the difference between the long and short open interests so that there is not an excessive amount of exposure on one side of a trading pair. This fee is applied to the net exposure of a pair.
Distribution
100% Traders with opposing position
For Long Positions
Accumulated funding fee per Open_interest (long) += (Long Open_interest - Short Open_interest) * blocks_elapsed * funding fee per block % / Long Open_interest.
For Short Positions
Accumulated funding fee per Open_interest (short) += (Short Open_interest - Long Open_interest) * blocks_elapsed * funding fee per block % / Short Open_interest.
**When the value is negative, it is included in the trade value in the same manner as positive PnL and it also moves the liquidation price further away. Conversely, if the value is positive, it is subtracted from the trade value like negative PnL and it also moves the liquidation price closer.
Example
When hourly funding fee is positive 0.0012%: Suppose the user opens a trade with $100 collateral. The net exposure will increase by $100*0.0012% for every hour; and is paid on an hourly basis.
When funding fee is negative 0.0012%: Suppose the user opens a trade with $100 collateral. The net exposure will decrease $100*0.0012% every hour; and is paid on an hourly basis.
Liquidation Fee
When: Happens when a loss of open trade is more than 90% of collateral.
When BTC/USD pair is $25000, And you open a market long position with 1000 USDC collateral with x5 leverage. Your funding fee of 2 USDC.
Your liquidation price will be 25000 - 25000 x (1000 x 0.9 - 1 - 2) / 1000 / 5 = 20,515 USDC.
