Fee Schedule
Fees Overview
| Fee Category | Major or Stable | Other | Maximum Fee |
|---|---|---|---|
| Orderbook Taker Fee | 0.04% | 0.08% | 12.50% of Premium |
| Orderbook Maker Fee | 0.04% | 0.08% | 12.50% of Premium |
| Vault Taker Fee (Premia) | 0.16% | 0.32% | 18.00% of Premium |
| Vault Taker Fee (3rd-Party)* | 0.08% | 0.16% | 18.00% of Premium |
| Exercise Fee (Long) | 0.04% | 0.08% | 12.50% of Intrinsic Value |
| Vault Deposit Fee | Free | Free | - |
| Vault Withdrawal Fee | Free | Free | - |
| Quoting Fee (RFQ) | Free | Free | - |
*Only includes fee to Premia, not inclusive of fees charged by third-parties.
Protocol Commissions
Base Layer amasses trading and exercise fees. Upon exercise, a fee of 0.04/0.08% is collected, not to exceed 12.5% of the option's intrinsic value. (Rates subject to change via Parliament vote.)
Margin Layer is a two-part equation. Firstly, it subtracts 0.4% from the Prime Rate (driven by supply and demand dynamics) charged to providers of margin lending liquidity. Secondly, it levies a dynamic liquidation fee that is specific to each user's positions (see Premia v3 white paper risk model.)
Vault Layer includes a 2% per annum management fee and a 20% fee on all positive returns for all native vaults (built in-house). For Vaults developed by third parties, fees will be negotiated ad-hoc on a case-by-case basis.
Fee Distribution
Fees are generated from trading, exercising, vaults, and Options Liquidity Mining. Fees are split between vxPREMIA holders, The Parliament (DAO), and The Operator Treasury. All fee distribution splits are subject to change via Parliament vote.
| Fee Category | vxPREMIA | Parliament | Treasury |
|---|---|---|---|
| Trading Fees | 80% | - | 20% |
| OLM Fees | 90% | 10% | - |
| Exercise Fees | - | - | 100% |
| Vault Fees | - | - | 100% |