Fees

The page below describes all fees associated with trading on Ferum.

Info on this page might change before the launch of mainnet.

User Fees

User fees are charged based on tiers which are determined by how much Fe the user address holds when placing an order.

For orders not placed on behalf of users, the user address is simply the address of the signer of the transaction. For orders placed on behalf of users, the user address is taken from the MarketAccountKey.

Fees are charged at the execution level and are deducted at the time of settlement in the settled asset. For example, if a user in fee tier 1 sells 1 APT for 200 USD as a taker, they get charged a 4.0 bps fee, 0.08 USD (200 USD * 4bps = 0.08 USD). The user will receive 199.92 USD for the trade.

Trading Fee Tiers

Tier	Requirements	Taker Orders	Maker Orders
1	< 100 Fe	4.0 bps	0 bps
2	100	3.9 bps	0 bps
3	1,000	3.8 bps	0 bps
4	10,000	3.7 bps	0 bps
5	100,000	3.6 bps	0 bps
6	> 1,000,000	3.5 bps	0 bps

User Fee Distribution

User fees are distributed to the host protocol, cranker, and ferum.

Host Protocol

For orders that originate from a protocol built on Ferum, a percentage of the user fee gets distributed based on the table below.

Tier	Requirements	Percentage of Trading Fee
1	< 100 Fe	60%
2	100	61%
3	1,000	62%
4	10,000	63%
5	100,000	64%
6	> 1,000,000	65%

Cranker Fee

To ensure that cranking is economically profitable, a percentage of the User Fee gets paid to the cranker.

The percentage is currently manually set but numerous factors are considered to ensure that cranking is economical on a per execution level. These factors include (but are not limited to): the minimum size of the fee basis (either execution.price * execution.qty for sells or execution.qty for buys); current gas costs; and the current price of APT relative to the market assets.

Ferum Protocol Fees

All remaining fees collected after deducting Host Protocol Fees and Cranker fees, is deposited into the Ferum treasury.