funding and fees

mirage has a robust fee structure to incentivize balanced open interest while minimizing impact on the trading experience. in total, mirage fees are significantly less than other popular DEXs and competitive with what traders will more typically see on centralized perps exchanges.

trading fees

trading fees on the mirage market are variable based on multiple factors. there are two types of fees, maker fees and taker fees, with the following ranges:

• maker fees: 0% - 0.05%

• taker fees: 0.05% - 0.5%

therefore the maximum fee a maker will pay is 0.05%, and the maximum fee a taker will pay is 0.5%.

each individual market keeps a record of the total open long positions and short positions. taker and maker fees are based on which direction the market is currently weighted:

• if there is more long open interest than short open interest:

  • longs pay taker fees

  • shorts pay maker fees

• if there is more short open interest than long open interest:

  • longs pay maker fees

  • shorts pay taker fees

taker fees increase the greater the imbalance of longs and shorts. similarly, maker fees decrease the greater the imbalance of longs and shorts.

for a perfectly balanced market (i.e. longs and shorts are equal), makers and takers both pay the same fee: 0.05%

funding rate

the funding rate is the cost of keeping a position open. it acts as a fee on trades that increase open interest skew and a rebate for trades that bring open interest into balance. funding is calculated and paid hourly.

for a market with no imbalance, traders pay a base rate to the protocol:

• base funding rate: 0.005% / hour

funding is then adjusted based on the imbalance.

• if there is more long open interest than short open interest:

  • longs pay funding

  • shorts receive funding

• If there is more short open interest than long open interest:

  • longs receive funding

  • shorts pay funding

funding rate further incentivizes balanced open interest by providing traders with opportunities to arbitrage skewed open interest. for example, if the APT market is skewed long, a user can buy spot APT and then open up an equal sized short on mirage and profit off of the funding rate without being impacted by the underlying price movement of APT. funding rate can also be arbitraged between different perps CEXs/DEXs that differ in skew.

for more information on funding rate arbitrage, see this in-depth guide.

funding can change rapidly as the traders enter and exit the market. a trade may be opened in a negative funding environment and then become positive as more traders take advantage of the funding rebate. it's important to manage open positions and keep track of fluctuations in funding.

fee split

protocol fees are split between 3 parties:

• LPs (mUSD minters) - 60%

• veMIRA rewards - 20%

• treasury - 20%