Fee Structure

Standard commission

The current standard trading commission fee on our platform is set at 0.05%. This fee applies to the total volume of a trade whenever a user opens or closes a position, whether partially or fully.

Distribution of Trading Fees

Currently, the trading fees collected on the platform are distributed between the protocol and capital providers. Specifically, 70% of the trading fees are retained by the protocol to support its ongoing operations, development, and maintenance. This portion of the fee ensures that the protocol continues to function efficiently, covering costs related to infrastructure, security, and future enhancements.

The remaining 30% of the trading fees are allocated to capital providers as an incentive for their participation in the ecosystem. These capital providers play a crucial role in maintaining liquidity and supporting the overall stability of the platform. By receiving a share of the fees, they are encouraged to continue contributing their resources, which ultimately benefits all users by ensuring a more liquid and efficient market.

This fee distribution structure is designed to create a balanced and sustainable environment, where both the protocol and its contributors are rewarded for their respective roles in the ecosystem's success

Liquidation fee

To fully grasp the intricacies of our liquidation mechanism, I encourage you to explore Liquidation Mechanics on Flaex. As for the fees, we maintain a straightforward and transparent approach: for each liquidated position, a fixed fee of 2% of the total volume is applied. This fee is consistent across all types of positions, whether you're going long or short, and regardless of the leverage you employ. This uniform rate ensures that all traders are treated equitably, providing clarity and predictability in managing your trades.

The liquidation fee on Flaex is thoughtfully allocated to support both the platform and its contributors. When a position is liquidated, 60% of the collected fee is directed to the Flaex treasury to fund ongoing development, while the remaining 40% is distributed to capital providers, rewarding them for their role in maintaining liquidity.

-> This distribution follows a specific process: all fees, whether from trades or liquidations, are first transferred to a central Vault and then re-distributed to capital providers according to these set rates, ensuring fair compensation within the ecosystem.