There are two types of trading fees you will see on VELA Exchange: Position and Funding fees
- Crypto Asset - To open a position, you will need to pay a maximum 0.25% fee of the position size opened. Same amount must be paid to close a position.
- Forex Asset - To open a position, you will need to pay a maximum 0.015% fee of the position size closed. Same amount must be paid to close a position.
Funding Fee: Once a position is opened it starts to accrue funding fees based on how much is being borrowed from the vault and the current funding rate (which resets every 4 hours and is also dependent on if Long (L) or Short (S) as shown in the image below). The longer a position is held open the higher the funding fee will be which is paid out upon closing the position.
As an example, assume you open a $10,000 ETH Long position with 5x leverage (meaning you're borrowing $8,000) and you close this trade out completely 6 hours later, or 2 funding periods. Also assume the rate (0.051%) given in the above image doesn't change over this 6 hour period. Your total funding fee would be:
TIP: In order to pay less Trading Fees on any asset class, users can stake VELA and/or eVELA tokens. (see table below.)
Staked VELA + eVELA
50% → VLP pool (in USDC) 10% → VLP stakers (in eVELA) 5% → VELA stakers (in USDC) 10% → VELA stakers (in eVELA) 25% → Treasury Fund