# Dynamic Fee for Degen Mode

Aster has introduced a dynamic fee model for Degen Mode, designed to tie closing fees to your position's PnL and protect users from losses.

### **How It Works**

The closing fee rate is calculated using three inputs: the position's profit or loss, the notional value, and a minimum floor rate.

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

Where:

* **PnL** is the profit or loss on the position
* **shareRate** is the percentage of the notional value charged as a fee
* **notional** is the total value used to open the position
* **closeMinRate** is the minimum closing fee rate: the lowest fee that can be applied when closing a position

### Parameters

* shareRate: 15% (default)
* closeMinRate: 0.03% (initial)

### **Example**

For a position with $100 in profit, a 15% share rate, and a $600 notional:

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

In this case, the minimum closing fee rate of 0.03% applies.

### **Execution Fee**

The execution fee is charged only when opening a position. It is set at $0.50 (BNB Chain) or $0.20 (Arbitrum), consistent with the fee charged on standard perpetuals trades.

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