Protocol Fee Structure

Protocol Fee Structure

Here is a complete breakdown of all fees that may be incurred when using the Xena platform:

  • Position fee for perpetual trading: 0.06% of the position size (both for opening and closing positions)

  • Liquidation fee: The fee that occurs during the position liquidation process $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 the pool) * 0.01%

  • Maximum borrowing fee: 0.01% per hour (at 100% utilization)

  • Swap fee: ranges from 0% to 0.85% The base swap fee is 0.25% for non-stablecoin swaps (e.g., USDT>ETH, BTC>BASE)

Please note that Xena incentivizes swapping assets that are underrepresented (in terms of pool weight) by dynamically adjusting the swap fee.

  • LP minting and burning fee (Tranches): 0% to 0.8% The base LP minting and burning fee is set at 0.2% Each asset's fee is dynamically determined to encourage actions that bring 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.

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