Fee Structure
Last updated
Last updated
The following fee structure applies to MUX V1 and MUX V3 trading protocols. If a trader's position routes to a third-party underlying leveraged trading protocol through the MUX aggregator, the fee structure will adapt accordingly. Please check the section and related underlying protocol docs for more details.
The MUX protocol charges position fees when traders open and close positions. The position fee is fixed at 0.06% and calculated as follows:
Open Fee: 0.06% × Asset Price × Position Size
Close Fee: 0.06% × Asset Price × Position Size
The collected position fees are allocated to MUX3LP holders, veMUX holders, and POL. Please check for more details.
MUX V3 Trading Protocol charges borrowing fees after traders borrow pooled assets for positions. The borrowing fees are collected every 1 hour. Borrowing fees for long and short positions are calculated separately on MUX.
borrowingFeeRate = max{utilization × limitRate, baseRate}
baseRate (Annualized)
Long - ETH: 8%
Long - BTC: 8%
Long - ARB: 8%
Long - BNB: 8%
Long - AVAX: 8%
Long - FTM: 8%
Short: 8%
limitRate (Annualized)
Long - ETH: 40%
Long - BTC: 40%
Long - ARB: 40%
Long - BNB: 40%
Long - AVAX: 40%
Long - FTM: 40%
Short: 50%
Utilization calculation examples:
ETH utilization = global long ETH position / ETH in pool
Short utilization = global short position / Stablecoins in pool
The collected borrowing fees are allocated between MUX3LP holders, veMUX holders and POL, the same as the collected position fee allocated. The baseRate and limitRate might change in the future as the MUX dev contributors make continuous evaluations.
The maintenance margin (MM) on the MUX protocol is 0.5%, and the liquidation fee is 0.06%. Therefore, a 0.06% (if it exists) margin will be collected as the fee when a position is liquidated. The remaining margin after liquidation will return to traders.
The liquidation fee will be shared between external MUX3LP holders, veMUX holders and POL, the same as the collected position fee allocated.
The MUX protocol charges position fees when traders open and close positions. The position fee is fixed at 0.06% and calculated as follows:
Open Fee: 0.06% × Asset Price × Position Size
Close Fee: 0.06% × Asset Price × Position Size
After traders borrow pooled assets for positions, the MUX protocol charges funding payments, which can be seen as borrowing fees from positions. The funding payment is collected every 1 hour. Long and short positions funding are calculated separately on MUX.
fundingFeeRate = max{utilization × limitRate, baseRate}
baseRate (Annualized)
Long - ETH: 8%
Long - BTC: 8%
Long - ARB: 8%
Long - BNB: 8%
Long - AVAX: 8%
Long - FTM: 8%
Short: 8%
limitRate (Annualized)
Long - ETH: 40%
Long - BTC: 40%
Long - ARB: 40%
Long - BNB: 40%
Long - AVAX: 40%
Long - FTM: 40%
Short: 50%
Utilization calculation examples:
ETH utilization = global long ETH position / ETH in pool
Short utilization = global short position / Stablecoins in pool
The collected funding fees are allocated between external MUXLP stakers, veMUX holders and POL, the same as the collected position fee allocated. The baseRate and limitRate might change in the future as the MUX dev contributors makes continuous evaluations.
The maintenance margin (MM) on the MUX protocol is 0.5%, and the liquidation fee is 0.06%. Therefore, 0.06% (if it exists) margin will be collected as the fee when a position is liquidated. The remaining margin after liquidation will return to traders.
The liquidation fee will be shared between external MUXLP stakers, veMUX holders and POL, the same as the collected position fee allocated.
MUX V1 offers 0% spreads under the ETH and BTC market. The spreads under BNB, AVAX and FTM markets are fixed.
ETH: 0%
BTC: 0%
ARB: 0.075%
BNB: 0.12%
FTM: 0.12%
AVAX: 0.15%
The MUX Degen protocol charges position fees when traders open and close positions. The position fee is fixed at 0.032% and calculated as follows:
Open Fee: 0.032% × Asset Price × Position Size
Close Fee: 0.032% × Asset Price × Position Size
The collected position fees are allocated between LPs, veMUX holders and the DegenLP Pool. Please check Protocol Income Allocation for more details.
The MUX Degen protocol charges borrowing fees for the pooled liquidity reserved for traders’ long or short positions. Both long and short positions will always be charged for borrowing fees despite the skew. The borrowing fee will be charged from the position’s collateral every hour. The borrowing rate is fixed at 5% of the position size annually. The collected borrowing fees are allocated between LPs, veMUX holders and the DegenLP Pool. Please check Protocol Income Allocation for more details.
After traders reserve pooled assets for positions, the MUX Degen Protocol charges funding payments from positions on the skewed side. The funding payment is collected every 1 hour.
The funding fee rate for the less skewed side is 0%; the funding fee rate for the skewed side will be up to 50% annually.
fundingRateAPY = max(abs(longs - shorts) / α * β, β)
When the skew is 0, the funding rate APY is 0; when the skew is α, the funding rate APY is β
The collected funding fees are allocated between LPs, veMUX holders and the DegenLP Pool. Please check Protocol Income Allocation for more details.
The MUX Degen Protocol uses dynamic price impact to adjust trading prices based on the position size; the deployed mechanism will mitigate price manipulation risks and ensure a fairer and more stable trading experience for all participants. The price impact will always be positive.
The collected position fees are allocated to MUXLP stakers, veMUX holders and POL. Please check for more details.