Fee Structure

Total Revenue of protocols

The revenue of the protocol includes position fee, liquidation fee and fund fee. In addition, minting and burning $BLP will also charge a transaction fee, and this part of the transaction fee will also be classified as protocol revenue.

1. Position Fee

Users need to pay position fees when trading, including transaction fees for opening and closing positions, and the rate remains unchanged at 0.1%.

The fee is calculated by multiplying the position size by the fee rate. To calculate the forced liquidation price more accurately, the protocol will automatically consider the liquidation fee when opening a position. The closing fee will be calculated according to the initial position, which is equal to the opening fee.

2. Fund Fee

The function of the Fund Fee is to adjust the price and behavior of the market to avoid the trend of leading the market to collapse.

When the funding fee of BLEX is relatively balanced between long and short positions, both long and short positions are paid to the protocol at a lower rate to reduce the capital cost of LP. When the long-short position is unbalanced, the funding fee will play a role in regulating. The purpose is to encourage users to hold or newly open the side with a small current position, and to make those who newly open or continue to hold the side with a large current position pay the cost. If the long position is always relatively large, the funding fee for the long position is always positive. The longer the user holds the long position and the larger the position, the more funding fee will be charged.

Among them, there also exists a situation where the fund fee needs to be paid to the user. However, there may be a situation where the position that needs to pay the fund fee has been closed and settled. Still, the party that collects the fund fee has not yet done the liquidation settlement, resulting in a discrepancy between actual receipts and receivables.

3. Execution Fee

The execution fee is designed to cover the GAS fee necessary for contract execution. In order to help users to pay the execution fee more conviniently, BLEX charges $USDT as the execution fee, and the protocol will buy the main chain tokens to pay the relevant GAS fee.

4. Liquidation Fee

The liquidation fee is a fixed amount, but the liquidation fee will not be charged when the user's position is forced to liquidate. When the market is extreme and the price quickly passes through the bankruptcy price, a fixed amount of liquidation fee will be charged.

Fee Distribution

In addition to paying the necessary costs for contract execution, contributors to the protocol will capture all other fee-related income, and the specific distribution is as follows:

In the V0.6 version, all fee revenue(100%) after excluding rebates will be owned by LPs and can be withdrawn by themselves.

In the V1.0 version, we will officially launch our more abundant economic model, and some changes will be made in the distribution method:

• 70% of fee revenue will be distributed to LP holders

• The remaining 30% will be distributed to holders of $BLE