🧾 Fees Structure Overview
We implement a dynamic fee structure to reflect real-time market conditions and ensure a fair and secure trading environment.
Our fees are never static; they adjust based on multiple factors to ensure efficiency and transparency in every transaction.
Key Components Affecting Fees
The total fees incurred when opening or closing a position depend on four main factors:
Liquidity Provider Fees (LP Fees)
Protocol Fees
Time to Maturity
Market Impact of the Order
You will see the term ‘coefficient’ appear many times in this section. The time coefficient is a key factor in fee calculations, and with this term, we are referring to a dynamic variable that is calculated this way:
Time Coefficient = Seconds to maturity ÷ Seconds per Year
Let’s delve deeper into all the factors that affect fees on Rho Protocol in the next sections.
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