> For the complete documentation index, see [llms.txt](https://leverup.gitbook.io/docs/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://leverup.gitbook.io/docs/trading/fee-breakdown.md).

# Fee Breakdown

### Open and Close Fee

These fees are charged when opening and closing positions.

* **1–100x Leverage**
  * Open Fee: **0.03%** of position size
  * Close Fee: **0.03%** of position size
* **500x, 750x, 1000x Leverage** ([🈚 Zero-Fee Perpetuals](/docs/trading/fee-breakdown/zero-fee-perpetuals.md))
  * **PnL < 0**
    * Open Fee: **Zero**
    * Close Fee: **Zero**
  * **PnL > 0**

    * Close Fee Percentage: **0.07%**
    * Close Fee: **Min(PnL \* 85%, Position Size \* Close Fee Percentage)** <br>

    <figure><img src="/files/C5U8xqQ2wOdVFxFqXdCq" alt=""><figcaption></figcaption></figure>

{% hint style="info" %}
For **RWA trading pairs**, both open and close fees are reduced to **0.02% of position size**.
{% endhint %}

{% hint style="success" %}
Open and close positions with $LVUSD/$LVMON to receive a 5% discount
{% endhint %}

***

### Execution Fee

Free

***

### Holding Fee

The Holding Fee is charged when a position is closed. It accrues every second based on position notional, holding duration, and the Holding Fee Rate locked at opening.

**Holding Fee = Position Size × Entry Price × Seconds Held × Holding Fee Rate Per Second**

Each market can have separate Long and Short Holding Fee Rates. The applicable rate is fixed when the position opens, and the accrued fee is deducted when the position closes.

***

### Funding Fee

Funding Fees are used to keep Long and Short Open Interest (OI) balanced. When one side becomes crowded, that side pays funding to the opposite side. When Long OI and Short OI are equal, the funding rate is 0.

**How it is calculated**

1. Measure the OI skew:\
   `Skew = |Long OI − Short OI|`
2. Convert the skew into utilization using the dominant-side OI cap:\
   `u = min(Skew, OI Cap) ÷ OI Cap`
3. Apply the cubic funding curve:\
   `Funding Rate = clamp(fundingFeePerSecondP × u³, minFundingFeeR, maxFundingFeeR)`

**Example: BTC/USD Long-Heavy Market**

Assume BTC/USD has the following market state and pair configuration:

* Total long quantity: 50 BTC
* Total short quantity: 10 BTC
* BTC price: 100,000 USDC
* Long-side OI limit: 5,000,000 USDC
* Full-utilization funding parameter: 25% annualized
* Funding bounds: 5% minimum, 75% maximum annualized

First, calculate the long/short skew:

`Q_skew = |50 - 10| = 40 BTC`

Convert the skew into USD notional:

`Skew_USD = 40 * 100,000 = 4,000,000 USDC`

Normalize the skew against the dominant side's OI limit:

`u = min(4,000,000, 5,000,000) / 5,000,000 = 0.80`

Apply the cubic curve:

`u^3 = 0.80^3 = 0.512`

Calculate the raw funding rate:

`Raw funding rate = 25% * 0.512 = 12.8% annualized`

Since 12.8% is within the configured 5%-75% bounds, the effective funding rate is 12.8% annualized.

In this example, longs are the larger side, so long positions pay funding. A 10,000 USDC long position held for 24 hours would accrue approximately:

`10,000 * 12.8% / 365 ~ 3.51 USDC`

The final funding amount is settled in the position's margin token when the position is closed or otherwise settled.

**Parameters**

* **u:** imbalance utilization, from 0 to 1. The larger the OI skew relative to the OI Cap, the closer u moves to 1.
* **fundingFeePerSecondP:** the per-second funding coefficient that controls how strongly imbalance translates into funding.
* **minFundingFeeR / maxFundingFeeR:** the lower and upper bounds applied to the final funding rate.
* **clamp(...):** keeps the calculated rate inside the allowed range, so extreme markets remain capped.

**Why cubic?**

The cubic curve keeps funding relatively quiet when the market is close to balanced, but increases the funding signal faster as the imbalance grows. This makes crowded one-sided markets more expensive over time while keeping the maximum rate ca50 BTC

Funding is time-based and calculated from the elapsed seconds while a position is open. The protocol updates or accounts for accrued funding when market state is read or changed, and fully reconciles it when the position is closed.

**Note:** Funding Fee and Holding Fee are combined and displayed as Funding Fee.