Protocol Fee Structure

Protocol Fee Structure

Below is a detailed breakdown of all fees associated with using the Sypher Finance platform:

• Position Fee for Perpetual Trading: A fee of 0.06% is charged on the position size for both opening and closing trades in the perpetual markets.

• Liquidation Fee: A fixed fee of $5 is incurred when a position reaches its liquidation price and is forcibly closed.

• Dynamic Borrowing Fee (Interest Rate for Leveraged/Perpetual Trading): Traders are charged a borrowing fee that accrues hourly for leveraged positions. The fee is calculated dynamically based on the asset utilization rate as follows: Borrowing Fee (per hour) = (assets borrowed / total assets in the pool) * 0.01% Maximum borrowing fee: 0.01% per hour (when asset utilization reaches 100%).

• Swap Fee: Swap fees range from 0% to 0.85%, with a base fee of 0.25% applied to non-stablecoin swaps (e.g., USDT > ETH, BTC > BASE).

• SLP Minting and Burning Fee (Tranches): The minting and burning of Sypher Liquidity Pool (SLP) tokens incurs a fee that ranges from 0% to 0.8%, with the base fee set at 0.2%.

  • This fee is dynamically adjusted based on each asset’s current weight within the liquidity pool.

  • The fee decreases when adding or removing liquidity brings the actual weight closer to the target weight, and increases when the action moves the weight further from the target.