🧀Fees
Every fee in the protocol, and how to minimize them
The protocol charges three fees. Current values are maintained in Protocol Parameters; the structure is explained here.
1. Trading fee (takers only)
The fee depends on how your order executes, not on the order type. Volume that rests on the order book and waits (maker) pays nothing. Volume that takes an existing order and executes immediately (taker) pays the fee — this includes the portion of a limit order that crosses the book and fills right away.
The fee is 1% per annum of the notional, prorated by time to maturity, and is charged in Future Value terms:
3 months
0.25%
6 months
0.50%
9 months
0.75%
12 months
1.00%
Example: borrowing 100 ETH for 6 months with a market order costs 0.50 ETH; the same trade as a limit order that rests on the book costs nothing, while any portion that crosses and fills immediately pays the taker fee.
Orders filled during the Itayose opening auction are also fee-free — an incentive to participate in price discovery for new markets.
2. Auto-Roll fee
Each quarterly Auto-Roll charges the same rate as the taker fee (0.25% per 3-month roll), embedded in the roll price. In exchange, positions are re-invested at a close-to-mid price with no manual action and no counterparty search.
3. Liquidation fee
Charged to liquidated borrowers: 7% of the liquidated value, taken from collateral — 5% to the liquidator, 2% to the protocol Reserve Fund. Details: Liquidation.
Where fees go
Trading fees and Auto-Roll fees accrue to the protocol's Reserve Fund, the buffer that protects the protocol in extreme events. Of the liquidation fee, only the 2% protocol share goes to the Reserve Fund; the 5% goes to the liquidator who executed the call. The Reserve Fund contract address is listed in Contracts & Security.
Minimizing fees
Use limit orders priced so they rest on the book rather than cross it — resting volume pays no trading fee, and it earns SFP points for providing liquidity
Participate in Itayose pre-open windows — zero fee fills
If you don't want quarterly roll fees, unwind before maturity rather than letting positions roll
Avoid liquidation entirely by managing your collateral — the 7% fee is by far the most expensive in the protocol
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