Summary: Total Fee Calculation

The total fee for a trade is calculated by combining the LP fees and protocol fees, then adjusting for the time to maturity using the coefficient.

Total Fee Formula: Total Fee = LP Fee + Protocol Fee

= Notional Value × (LP Fee Percentage + Protocol Fee Percentage) × Coefficient

Breaking It Down

1. Calculate the Combined Fee Percentage:

• Add the LP fee percentage and the protocol fee percentage.

• Example: If LP Fee Percentage is 0.03% and Protocol Fee Percentage is 0.27%, the combined fee percentage is 0.30%.

1. Apply the Coefficient:

• Multiply the combined fee percentage by the coefficient to adjust for time to maturity.