Fee Structure
An outline of fees on the aiPX Protocol
Position fee for perpetual trading: 0.1% of position size (open/close)
Liquidation fee: $5
Dynamic borrowing fee (interest rate for leveraged/perpetual trading)
Traders pay a borrowing fee every hour. The fee is calculated dynamically based on the asset utilization rate:
Borrowing fee (per hour) = (assets borrowed) / (total assets in pool) * 0.01%Maximum borrowing fee: 0.01% per hour (at 100% utilization)
Maintenance margin: 1%
Liquidation occurs when the debt of an open position reaches 99% of the user's collateral. Any leftover funds after liquidation will be sent back to the user's wallet.
Swap fee: ranging from 0% to 0.65%
The base swap fee equals 0.2% for non-stablecoin swaps (i.e. USDC>ETH, or BTC>ETH) and 0.01% for stablecoin swaps (i.e. USDC<>USDT). Note that the protocol incentivizes the swapping of assets that are underrepresented (in terms of pool weight) by dynamically reducing the swap fee and vice versa.
LP minting and burning fee (Tranches): 0% to 0.6%
The base LP minting and burning fee equals to 0.2%. The fee is dynamically determined for each asset to incentivize bringing the actual weight closer to the target weight. The minting and burning fee decreases whenever adding/removing liquidity would bring the actual weight closer to the target weight, and vice versa.
Fee Distribution
AIPX Stakers
10%
AGO Stakers
10%
ALP Fees
45%
DAO Treasury
22%
Development & Operating Reserve
10%
Partnerships & Promotions Reserve
3%
Changes to the fees and parameters may be changed according to proposals passed by the aiPX DAO.
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