# Platform Fees Overview

## Fee Structure

### Overview

Ostium implements a transparent and trader-friendly fee structure designed to minimize costs while ensuring platform sustainability. Our fee model consists of opening fees, conditional closing fees, and time-based fees that vary by asset class.

### Fee Components

#### Opening Fees

A one-time opening fee is charged when a position is opened. This fee varies by asset class and trading conditions:

**Crypto Pairs**

Crypto fees depend on leverage and open interest (OI) dynamics:

* **Maker Fee (3 bps)**: Applied when leverage ≤ 20× AND the trade reduces OI imbalance
* **Taker Fee (10 bps)**: Applied when leverage > 20× OR the trade increases OI imbalance
* **Mixed Trades**: Maker fees apply to the balancing portion, taker fees to the imbalance-creating portion

**Non-Crypto Pairs**

Non-crypto assets use a simplified static taker fee model:

| Asset Class | Opening Fee |
| ----------- | ----------- |
| **Indices** | 5 bps       |
| **Forex**   | 3 bps       |
| **Stocks**  | 10 bps      |

#### Closing Fees

Our profit-aligned closing fee structure ensures traders are only charged platform fees on successful trades:

* **Losing Trades**: 0 bps (no closing fee)
* **Winning Trades**: 3 bps platform fee

{% hint style="info" %}
**Note**: There are no closing fees for liquidated positions, as liquidation rewards serve as the effective fee.
{% endhint %}

### HEDGE Token Buybacks

A portion of platform fees generated from winning trades will be allocated toward **HEDGE token buybacks**. This mechanism:

* Creates consistent buying pressure for HEDGE tokens
* Rewards HEDGE holders through token appreciation
* Aligns platform success with token value
* Builds a sustainable tokenomics model

The buyback program ensures that as trading volume and profitability increase on Ostium, HEDGE token holders directly benefit from the platform's growth.

### Fee Calculation Example

**Trade Parameters:**

* Collateral: $100
* Leverage: 50×
* Position Size: $5,000

#### Total Trading Costs

| Asset Class | Opening Fee | Closing Fee (Loss) | Closing Fee (Win) | Total Cost (Loss) | Total Cost (Win) |
| ----------- | ----------- | ------------------ | ----------------- | ----------------- | ---------------- |
| **Crypto**  | $5.00       | $0.00              | $1.50             | **$5.00**         | **$6.50**        |
| **Indices** | $2.50       | $0.00              | $1.50             | **$2.50**         | **$4.00**        |
| **Forex**   | $1.50       | $0.00              | $1.50             | **$1.50**         | **$3.00**        |
| **Stocks**  | $5.00       | $0.00              | $1.50             | **$5.00**         | **$6.50**        |

### Additional Fees

#### Funding Rates (Crypto Only)

Applied exclusively to crypto pairs to manage open interest imbalances:

* Compensates for OI imbalances between long and short positions
* Incentivizes market rebalancing
* Zero-sum transfer between traders
* Accrues continuously and compounds per block
* Realized upon position close

#### Rollover Fees (Non-Crypto Only)

Applied to forex, indices, and stocks to reflect carrying costs:

* Charges both long and short positions equally
* Non-zero-sum (revenue for protocol)
* Compounds per block
* Realized upon position close
* Covers the cost of maintaining positions over time

#### Liquidation Fees

When positions are liquidated:

* Trader's remaining collateral becomes liquidation reward
* Paid to Market Making Vault liquidity providers
* No separate liquidation fee charged
* Serves as effective liquidation penalty

### Pricing & Execution

* **No Artificial Spreads**: All executions use top-of-book pricing from underlying markets
* **Transparent Pricing**: Real-time market prices without markup
* **Fair Execution**: No price manipulation or hidden costs

***

### Key Benefits

✅ **Profit-aligned fee structure** - Only pay platform fees on winning trades

✅ **No closing fees on losing trades** - Reduced barrier to trading

✅ **Transparent, predictable costs** - Clear fee schedule with no hidden charges

✅ **Competitive rates** - Market-leading fees across all asset classes

✅ **HEDGE token buybacks** - Platform success directly benefits token holders

✅ **No artificial spreads** - Fair market pricing without markup
