💸Fees and Spread
Rollie's fee and spread structures are designed to be transparent and competitive. By charging reasonable fees and prioritizing low spreads, Scrollie seeks to attract more traders and maintain a healthy user trading environment. By being conscious of fees and spreads, users can take advantage of Rollie's trading engine and achieve their trading goals efficiently and cost-effectively.
Fees and spreads are integral components of Rollie's trading engine and play a significant role in determining the cost and profitability of trades. Rollie aims to create a fair and transparent trading environment that promotes user trust and satisfaction by providing transparent information and empowering users with knowledge.
Legend
Long - L
Short - S
Above - A
Below - B
Open Interest - OI
Rollover Fee per Block - RFPB
Trade Collateral - TC
Opening Fee and Closing Fee
0.04% of position size
Charged upon the total position size (Calculated using collateral * leverage)
Base Spread
0.025% for crypto and stocks
0% for FX
It is inversely related to the liquidity of the pair, meaning the spread is smaller the more liquidity it has. This is considered to simulate the bid/ask spread on a Central Limit Order Book (CLOB) exchange's execution price. Spread only applies when opening a trade. There is no spread when closing a trade.
Price impact (%)
(OI {L/S} + New trade position size / 2) / 1% depth {A/B}
Price impact depends on the position size of your trade and the pair's liquidity on spot exchanges; this is used to prevent price manipulation of the spot price of an asset. This is also implemented in a way that it simulates execution price in a CLOB exchange and is used to protect SLP holders from the directional skew. This is calculated by the current aggregate open interest on the platform plus half of the trade position size, divided by 1% of the order book depth on a reference exchange. Price impact only applies when opening a trade. There is no spread when closing a trade.
Borrowing Fee
(Current block - trade open block) * RFPB % * TC
Allows traders to be mindful of position size and leverage, which enables solid risk management for protocol health. Note that Rollie provides synthetic leverage.
Funding Fee
Long Position Accumulated funding fee per OI += (Long OI - Short OI) * blocks elapsed * funding fee per block % / Long OI
Short Position Accumulated funding fee per OI += (Short OI - Long OI) * blocks elapsed * funding fee per block % / Short OI
The goal is to minimize the discrepancy between long and short open interests and prevent significant exposure to one side of any trading pairs. This is common in centralized exchanges as it incentivizes perpetual prices to trade at par to spot prices through a funding rate mechanism, where long pay shorts if contracts are traded at a premium to spot, and vice versa. Rollie uses oracle-based pricing but includes a fee to neutralize the long-short skew to protect SLP holders. As with rollover fees, they are charged per block. The fee is charged on the total position size.
Rollover Fee
This fee varies depending on the volatility of the underlying assets being traded, which is measured using the average true range (ATR), expressed as a percentage of the average closing price (ATRP). This is charged per block.
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