Fee Structure

All fees are deterministic, on-chain, and non-upgradeable.

Summary

Fee	Rate	Recipient	When
Position open	5% of USDC notional	3% LP + 2% protocol	Every long/short open
Swap	Configurable (default 1%)	Pool (passive LP yield)	Every swap
Position close	1% of profit	Protocol	Profitable closes only
Liquidity ops	0%	—	Add / withdraw liquidity

Position open fee — 5%

Split:

• 3% → lpFeesAccumulated (claimable by LP via claimFees())
• 2% → protocolTreasury (transferred immediately)

Minimum floor: 0.05 USDC (split 3/5 LP, 2/5 protocol). Applies when 5% of notional would be less than 0.05 USDC.

Swap fee

Set at pool creation as swapFeeBps (immutable). Applied to all three AMM curves.

The fee is computed on the spot value of the input, giving a true percentage-of-notional fee regardless of trade size. The fee stays in the pool, implicitly increasing the LP's reserves.

Position close fee — 1% of profit

Only charged on profitable closes:

• If pnl > 0: closeFee = pnl * 1% → sent to protocol treasury
• If pnl ≤ 0: no fee

Realize operations (including force realize) do not charge a close fee.

Constants

LP_FEE_BPS       = 300   // 3%
PROTOCOL_FEE_BPS = 200   // 2%
MIN_POSITION_FEE = 50000 // 0.05 USDC
CLOSE_FEE_BPS    = 100   // 1%

These are hardcoded constants — not configurable after deployment.