# Protocol Revenue

## **Fee Collection：**

The platform generates revenue through fees charged for its usage. These fees take various forms, including:

* Trading fee for perpetual: 0.04% of position volume (close)
* Funding fee: The funding rate is based on the size of positions.The collection interval is one block
* LP burning fee: The base burning fee is equal to 0.2%
* Liquidation fee: The fee is calculated dynamically based on the position aesset

## **Formula：**

Trading fee=margin\*lever\*0.04%

**Funding fee**

* Closed long position = long\_margin \* lever \* funding rate
* Closed short position = short\_margin \* lever \* funding rate
* Funding rate=rebaselong + rebaseINC-openrebase

LP burning fee= LP Tokens value(pool assets)\*0.2%

Liquidation fee=Margin+margin call-PnL-trading fee-ExecutorFee(Charge greater than 0)

## **Fee Distribution：**

Revenue is distributed from fees collected on the platform. These fees are routed as follows:

| <p><br></p>              | Trading Fee | Funding Fee | LP Burning Fee | Liquidation fee       |
| ------------------------ | ----------- | ----------- | -------------- | --------------------- |
| Liquidity Provider       | 50%         | 100%        | <p><br></p>    | 100%(Aggregated Pool) |
| Token Stakers            | 30%         | <p><br></p> | <p><br></p>    | <p><br></p>           |
| DAO Treasury             | 15%         | <p><br></p> | 50%            | 50%(Isolated Pools)   |
| Reserved for Development | 5%          | <p><br></p> | 50%            | 50%(Isolated Pools)   |