Dynamic Fee for Degen Mode

Aster introducted a dynamic fee for Degen Mode. This fee is designed to charge fees by PnL and protect users from losses and.

How it works?

The dynamic fee is calculated based on the size of the position, the amount of profit or loss, and the number of times the position has been closed. The formula for calculating the dynamic fee is as follows:

$\text{closeFeeRate} = \max \left( \frac{\text{pnl} \cdot \text{shareRate}}{\text{notinal}}, \text{closeMinRate} \right)$

where:

• Pnl is the profit or loss on the position

• Sharerate is the share rate, which is the percentage of the notional that is paid in fees

• Notional is the amount of money that is used to open the position

• CloseMinRate is the minimum closing fee rate, which is the lowest amount that you can pay to close a position

Parameters:

• Share rate will be 15% as default

• CloseMinRate will be 0.03% initially

Example:

For example, if you have a position with a profit of $100, a share rate of 15%, and a notional of $600, then the closing fee rate would be:

Closing fee rate = Max(100 * 15% / 600, 0.03%) = 0.03%

In this case, the closing fee rate would be 0.03%, which is the minimum closing fee rate.

Remarks:

The execution fee will only be charged when a position is opened. It is set at 0.5 USD (BNB Chain) / 0.2 USD (Arbitrum) similar to what is being charged when trading classic perps.