Fees

Fees on Vela Trade

Here are the fees associated with user actions on Vela Trade for Traders.

Trader Fees:

Crypto (VLP Assets)

• Open/Close Fee: This fee is charged whenever a position is opened or closed. For trades involving assets from Pool 1 (BTC and USDC), the fee is 0.051% (5.1 bps) of the total size of the trade.

• Margin Fee: This fee is charged continuously on an open position. It depends on the size of the trade and the utilization of the pool asset being used. There is a cap of 90% on the utilization for all assets to ensure liquidity providers (LPs) are able to withdraw their assets. The specific margin fee steps vary per asset and depend on the utilization rate.

Margin Fee Calculation Formula:

The margin fee calculation depends on the following dynamic variables:

$$\text{MarginFee}_{\text{\scriptsize total}} = \text{MarginFee}_{\text{\scriptsize step1}} + \text{MarginFee}_{\text{\scriptsize step2}} + \text{BaseFee}_{\text{\scriptsize margin}}$$

Where the utilization rate is capped at 90%.

• Swap Fee: If a user deposits an asset that is different from the one being used as collateral, a swap fee will be applied. This is a dynamic fee that varies based on the balance of assets in the FLP (Flash Liquidity Pool).

Swap Fee Calculation Formula:

The total swap fee is calculated by the following formula:

$$\text{SwapFee}_{\text{\scriptsize total}} = \text{SwapFee}_{\text{\scriptsize paying}} + \text{SwapFee}_{\text{\scriptsize receiving}} + \text{BaseFee}_{\text{\scriptsize paying}} + \text{BaseFee}_{\text{\scriptsize receiving}}$$