There are two types of trading fees you will see on VELA Exchange: Position and Funding fees
Position Fee:
• 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:
$Funding Fee= 8000 \times 0.00051 \times 2=8.16$

## Fee Discounts

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
Discount
500
2%
2,500
3%
5,000
5%
10,000
10%
25,000
15%
50,000
20%
100,000
30%
250,000
40%
500,000
50%

## Distribution of collected fees:

50% → VLP pool (in USDC) 10% → VLP stakers (in eVELA) 5% → VELA stakers (in USDC) 10% → VELA stakers (in eVELA) 25% → Treasury Fund