Fees

Open fee

To open a position on Gravix, users are required to pay the Open fee. The basis for calculating the commission is the cost of an open position. The base rate for opening a position depends on the type of asset being traded. All commissions collected for opening positions are distributed among stgUSDT holders.

Formulas for calculating Open Fee and Open Position:

$Open\,fee = Collateral*Leverage*Open \,fee\,rate$

$Open\,position = (Collateral - Open\,Fee)*Leverage$

Where:

• Open fee - a commission charged for opening a position

• Open position - the size of a trader's open position

• Collateral - the amount a trader uses to open a position without taking leverage into account

• Leverage - a multiplier indicating how much a trader's position is increased relative to their collateral

• Open fee rate - the percentage rate charged by the exchange for opening a position. It may vary depending on the type of traded asset

Open fee rates for different types of assets:

Asset type	Open fee
Forex	0.03%
Equities	0.10%
Crypto	0.10%
Indexes	0.10%
Commodities	0.10%
BTC/BNB/ETH	0.05%

Borrow rate

The borrow rate is the interest rate traders pay for using borrowed funds to open positions. The base rate varies depending on the asset type. The rate is calculated while opening a position. It is based on the amount of borrowed funds and is quoted as a percentage per hour. The borrowing rate is automatically deducted from the user's balance when their position is closed.

Formulas for calculating Borrow rate and Borrow fee:

$Borrow\,rate, per\,hour = Base\,rate * Leverage$

$Borrow\,fee, per\,hour= Borrow\,rate * (Collateral -Open\,fee)$

Where:

• Borrow rate - the interest rate that the trader pays for using borrowed funds.

• Base rate - the base interest rate for borrowing, which depends on the type of asset used when opening a position

• Leverage - a multiplier indicating how much a trader's position is increased relative to their collateral

• Collateral - the amount a trader uses to open a position without taking leverage into account

• Open fee - a commission charged for opening a position

• Borrow fee - the commission that the trader pays for using borrowed funds

Base rates for different types of assets:

Asset type	Base rate
Forex	0.001%
Equities	0.002%
Crypto	0.002%
Indexes	0.002%
Commodities	0.002%

Funding rate

The funding rate is a mechanism designed to ensure the balance of open positions with the help of periodic payments (to long or short traders). These payments are calculated in accordance with the discrepancy between their open positions and their balances. It should be mentioned that Gravix does not charge any fees for funding.

The funding rate varies depending on the market depth and the ratio of open positions. The values of Long and Short positions are equal to the sum of all open positions. They are updated when new positions are being opened or closed. In order to ensure accuracy while calculating, Long and Short positions of the underlying asset are calculated when a trader opens a position.

How the funding rate is calculated

The funding rate is calculated as the difference between the number of open purchase positions (Long) and sale positions (Short) of the underlying asset as well as the market depth. The formula for the calculation of the funding rate is as follows:

$Funding\,rate = Funding\,base\,rate * \cfrac {|Long - Short|}{Market\,depth}$

Where:

• Funding rate - the funding rate that a trader pays or receives depending on the direction of his open position

• Funding base rate - the base funding rate set by Gravix

• Long/Short - the volumes of open long and short positions

• Market depth - the depth of the market, which determines how large the open amount of assets must be in order to affect the cost of funding

The funding rate can be both positive and negative. It depends on the number of long and short positions. If long positions exceed short ones, then long traders will pay funding fees to short traders, and vice versa.

$Long\,funding\,rate = \begin{cases} Funding\,rate &\text{if } Long>Short \\ -Funding\,rate * \cfrac {Short} {Long} &\text{if } Long<Short \end{cases}$

$Short\,funding\,rate = \begin{cases} Funding\,rate &\text{if } Short>Long \\ -Funding\,rate * \cfrac {Long} {Short} &\text{if } Short<Long \end{cases}$

Close fee

When a position is closed, the trader is charged a commission for closing (Close fee), which is based on the value of the closed position:

$Сlose\,fee = ((Collateral-Open\,fee) * Leverage + PnL - Funding\,fee - Borrow\,fee) * Close\,fee\,rate$

Where:

• Close fee - a commission charged for closing a position

• Collateral - the amount a trader uses to open a position without taking leverage into account

• Open fee - a commission charged for opening a position

• Leverage - a multiplier indicating how much a trader's position is increased relative to their collateral

• PnL - a profit or loss that a trader realizes upon closing a position.

• Funding fee - a fee that some traders pay to others depending on the change in the price of an asset

• Borrow fee - the commission that the trader pays for using borrowed funds

• Close fee rate - equals the Open fee rate for this type of asset