# Fees

### Trading Fee 

Trading Fee refer to the costs incurred for opening or closing positions. 

The standard fee rate on the platform is 0.06%. 

Fee Calculation Formula: Fee = Position Quantity \* Opening Price \* Opening/Closing Fee 

Recipient: Treasury 

The fee rates may vary for each trading pair. 

For specific details, please refer to the [Specifications](/perpetual/perp-info/specifications.md).

Payment Method: Fees are deducted first from the trading wallet. If the balance in the trading wallet is insufficient, fees are accounted for within the margin through bookkeeping (deducted uniformly upon closing positions). 

**Case**

|             |              |
| ----------- | ------------ |
| Fee Rate    | 0.06%        |
| Price       | 2500 USD/ETH |
| Size        | 4 ETH        |
| Positon     | 10000 USD    |
| Trading Fee | 6 USD        |

### Market Impact Fee 

The market impact fee is utilized to offset the impact of large orders on market depth. Market impact fees are charged during opening and closing positions (no charge for liquidations and maximum profit-taking closing). The specific rules are as follows: 

Market Impact Fee Rates for Major Currency Pairs: (Quantity \* Price) / (1000 \* 0.1% Order Depth for Buy/Sell Orders); 

Market Impact Fee Rates for Other Currency Pairs: (Quantity \* Price) / (100 \* 1% Order Depth for Buy/Sell Orders); 

Recipient: Treasury 

Market Impact Fee Calculation Formula: Market Impact Fee = Position \* Mark Price \* 

Market Impact Fee Rate Market Impact Fee Rate: Determined by the size of the position.

### Funding Fee

The funding fee mechanism facilitates periodic cash flow exchanges between long and short position holders, or liquidity providers. It involves the exchange of funds between long and short position holders (or liquidity providers), and **the platform does not charge any funding fees.**

Payment Method: When the funding rate is positive, long position traders pay short position traders; conversely, when the funding rate is negative, short position traders pay long position traders. Funding fees are settled every 1 hours. Actual settlements are completed within 1 minute, with each individual contract operating at the millisecond level without interruption. Users are only required to pay or receive funding fees if they hold positions at the time of fee collection. If a position is closed before fee collection, no funding fees are required. If contracts are prematurely closed before settlement, no funding fees for the current period are needed. The timing of fee collection may be adjusted in real time based on market conditions. Recipient: Counterparty, LP Collection Time: Closing, Liquidation, Maximum Profit-taking Closing. 

Fee Calculation (Long) / Daily:

* Long Funding Rate = Base Rate + Linear Rate \* Long Position / (Total Liquidity \* Maximum Liquidity Utilization Rate)
* Long Funding Fee = Short Position \* Short Funding Rate - Long Position \* Long Funding Rate
* Actual Long Funding Rate (Daily) = Long Funding Fee / Long Position Fee Calculation (Short) / Daily:
* Short Funding Rate = Base Rate + Linear Rate \* Short Position / (Total Liquidity \* Maximum Liquidity Utilization Rate)
* Short Funding Fee = Short Position \* Long Funding Rate - Short Position \* Short Funding Rate
* Actual Short Funding Rate = Short Funding Fee / Short Position
* Maximum Liquidity Utilization Rates may vary for each trading pair. Please refer to the [Specifications](/perpetual/perp-info/specifications.md) for each trading pair. Fee Calculation (LP):
* LP Earnings (Daily) = Long Position \* Long Funding Rate \* (Long Position - Short Position) / Long Position
* Maximum Liquidity Utilization Rates may vary for each trading pair. Please refer to[Specifications](/perpetual/perp-info/specifications.md) for each trading pair.

### Execution Fee

\
The execution fee is charged upon opening a position and is a fixed fee used for on-chain trade matching.<br>

1. Fee Rate: Currently set at 0.005 $FLOW.
2. Recipient: Collected by the Treasury, actually used for on-chain gas payment.
3. Collection Method: Deducted from the trading wallet.
4. This fee is charged when submitting an order, and users can reclaim it by canceling the order.


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