💵| Fee Distribution
Last updated
Last updated
In order to understand how fees are distributed and yield is generated on EasyX, let's follow the example below of a user opening a position on the platform.
In essence, every user on EasyX will pay Trading Fees twice: once when they open a position, and once again when they close the position. Below you can see a breakdown of the Trading Fees and how they are distributed.
Meanwhile, the outcome of the trade will decide if EasyX Liquidity Providers will be the ones paying the trader or if the trader will be paying them with their collateral instead.
Trading Fees for each user can change based on their monthly volume: the more volume you generate on the platform, the cheaper it is for you to trade on EasyX. The values shown on the table above are applied on the Size of each trade. For example:
• If a trader opens a $1,000 trade with x100 leverage and they are at Tier 0, the size of the trade is $100,000 and the opening fee will be $100,000 x 0.10% = $100. If they were at Tier 1, they would pay a $90 opening fee and so on.
Trading Fees are distributed to Liquidity Providers, $EZX Stakers and Operations that keep the platform up & running (Execution Fund).
In summary:
• Liquidity Providers on EasyX on earn 60% of the Trading Fees generated on the platform, and 100% of every trader's PNL: traders lose - LPs get paid, and vice versa.
• $EZX Stakers receive 30% of the Trading Fees generated on the platform, which is essentially ALL Protocol Fees.
• The final 10% of the Trading Fees are reserved for Operations that are necessary for the platform upkeep.