Fees
| Fee | Amount | When |
|---|---|---|
| Execution fee | $0.02 per request | Every open and close request. Pays the keeper's gas for the fill. |
| Open fee | Taker fee on the order margin (excluding the execution fee) times your leverage, at most 0.02% (2 bp), minus any referral discount. 0 at launch. | At open, taken out of the order margin. |
| Close fee | 0.004% of size (0.4 bp) | Every close, win or lose. Taken from profit first, then from margin. |
| Win fee | 2% of profit | Only on a winning close. |
There is no funding fee.
What the amount you type covers
In the app, the amount you type is everything that leaves your free balance for the open, including the $0.02 execution fee and the open fee:
- The execution fee comes off first. The rest is the order's margin.
- The open fee is taken out of that margin. What is left is locked as collateral.
For example, typing 10.00 at 100x with no open fee sends $9.98 of margin and $0.02 of execution fee, locks $9.98 of collateral and opens $998 of size.
If you build transactions yourself (with the SDK or the contracts), margin does not include the execution fee: your free balance must cover the margin plus $0.02. The open fee still comes out of margin.
Winners keep 90% of the gain
A winning position keeps 91.84% of its gain, then pays the 2% win fee on that, so you net 90% of the gain (91.84% x 98%). The 0.4 bp close fee comes on top, and so does a builder fee if the trade was sent with a code you approved.
Deadband. The first 0.2 basis points (0.002%) of a favorable move pay nothing. A move inside the band is a scratch: you get your margin back minus the close fee. Losses have no deadband.
Example
A $1,000 position (at full payout factor) gains 1%:
| Step | Amount |
|---|---|
| Gain after the 0.2 bp deadband | $9.98 |
| 91.84% kept | about $9.17 |
| 2% win fee | about $0.18 |
| Close fee (0.4 bp of $1,000) | $0.04 |
| Profit credited | about $8.94 |
Plus the $0.02 execution fee on each of the open and the close request.
A loss is your size times the price move, capped at your margin. The close fee is taken from whatever margin is left.
Where fees go
Fees Parchment keeps, after referral shares, are split between PARCHMENT stakers and the treasury. On every losing trade, a 2% loss fee is also taken from the amount the pool gains and split the same way. Both splits depend on how well the pool is covered; see Staking.
Large positions
Positions that push a market side past its depth are paid on a smaller share of their size. See Size and payout.