Fees & Slippage
Last updated
Last updated
Opening Fee = Number of Contracts*Entry Price*Opening Fee Rate
For example, if a trader on BNB Chain opens a 1 ETH/USD long position at 1,500 USD, then the opening fee = 1*1,500*0.08% = 1.2 USD.
Closing Fee = Number of Contracts*Close Price*Closing Fee Rate
For example, if a trader on BNB Chain closes a 1 ETH/USD position at 1,600 USD, then the closing fee = 1*1,600*0.08% = 1.28 USD
Positions with higher leverages (500x/750x/1001x) have dynamic close fees. This model is designed to charge fees based on PnL. The minimum close fee under this model is 0.03%.
where:
Pnl is the profit or loss on the position
shareRate is the share rate, which is the percentage of the notional that is paid in fees
Notional is the amount of money that is used to open the position
closeMinRate is the minimum closing fee rate, which is the lowest amount that you can pay to close a position
For example, if you have a position with a profit of $100, a share rate of 15%, and a notional of $600, then the closing fee rate would be:
Closing fee rate = Max(100 * 15% / 600, 0.03%) = 0.03%
Note: In the event of liquidation, the 85% liquid lost rate includes close fee.
The execution fee helps to fulfill blockchain network costs and guarantee optimal functioning of order execution. This fee is charged only when a position is opened. The execution fee is fixed at 0.5 USD for trading on BNB Chain and 0.2 USD for trading on Arbitrum.
The funding rate balances the long-short ratio on AstherusEX, protects ALP from excessive risk exposure, and minimizes the holding position risk of the pool.
Funding rate is calculated every block. When the market changes, the accumulated funding fee is automatically calculated. The funding fee will be reflected in the unrealized PnL of a position, directly affecting the user’s liquidation price.
Refer to Long_Funding Fee when user holds a long position.
Refer to Short_Funding Fee when user holds a short position.
Formula:
Funding Fee Per Block =(Number of Contracts * Mark Price) * Funding Rate Per Block
Funding Rate Per Block is calculated based on the gap between the long and short positions and current interest rate:
Long Funding Rate = Long Basic Funding Rate - Borrow Rate
Short Funding Rate = Short Basic Funding Rate - Borrow Rate
Long position> Short position,
Long Basic Funding Rate=-abs{funding rate p}
Short Basic Funding Rate=abs{funding rate p}
Long position< Short position,
Short Basic Funding Rate=abs{funding rate p}
Long Basic Funding Rate=-abs{funding rate p}
Borrow rate will be reviewed and updated regularly to ensure there is proper risk management. The borrowing fee is determined by the size of the user's position and the time of execution.
Base Interest Rate Per Block
Base Interest Rate Per Block = Base Interest Rate / (365*28800)
Based Interest Rate = k*HV
k is the adjustment factor, the platform may be adjusted when k=1.25
HV is the historical volatility, HV = 2Week Average Volatility *365
For more information, please refer to the History Volatility & Base Interest Rate below
Liquidation Price Distance = Entry Price * ( Initial Margin * Liquidation Lost Rate + CumFunding Fee) / Initial Margin / Leverage
Liquidation Price
Long: Entry Price - Liquidation Price Distance
Short : Entry Price + Liquidation Price Distance
Parameters:
Entry Price is the price at which the traders opens a position
Initial margin is the user’s initial collateral used as margin
Liquidation Lost Rate is the forced liquidation lost rate, and the default value is 90%
CumFunding Fee is the accumulated funding fee
Leverage is the user's selected leverage multiple
Example:
If a trader opens a ETH/USD long position at 10x leverage, the entry price is 1,500, initial margin is 100, the funding fee is 2, the liquidation lost rate is 85%, then
Liquidation Price Distance = 1,500 * (100*85%+2) / 100 /10= 130.5
Liquidation Price = 1,500- 130.5 = 1,369.5
Slippage can be fixed or dynamic. AstherusEX determines if the trading pair utilizes fixed slippage or dynamic slippage according to its liquidity from the oracle’s sources. This helps to prevent price manipulation. In general, slippage is positively correlated with open interest and newly opened positions, and is negatively correlated with the liquidity of the trading pair from the oracle's sources.
For example, a trader initiates a ETH/USD transaction. The price obtained by Pyth Oracle is 1,500 and the slippage is 0.01%. Therefore, the trader's entry price is 1,500 + (1500*0.01%) = 1,500.15.
As the liquidity of each trading pair in the oracle's source markets differs, the slippage of each trading pair is also different. In general, trading pairs with low liquidity have wider spreads.
Dynamic slippage is calculated based on ALP position. It is affected by current Symbol open interest and users' new position size.
Formula:
Long_Dynamic Slippage (%) = (NewPostion+Symbol Long open interest)/1%_DepthAbove
Short_Dynamic Slippage (%) = (NewPostion+Symbol Short open interest)/1%_DepthBelow,
whereby
Long open interest and Short open interest are the current values of the open positions of the trading pair
1%DepthAbove and 1%DepthBelow are the current aggregated mainstream spot market depths +1%/-1% of a trading pair
