Long Position Round Trip

date mAsset action quantity price market value gross profit net profit
5/1/2021
mAAPL
buy
5
$130
$650
-
-$6.20 (-0.9%)
5/2/2021
mAAPL
sell
5
$140
$700
$50 (7.69%)
$43.82 (6.7%)

(Gross profit) $50.00 – (Total costs) $6.18 = (Net profit) $43.82 or 6.7% net gain

This example shows a typical scenario where a trader buys and sells an mAsset. The table below shows all the fees associated with this round trip trade of mAAPL

FeeCost
Buy Commission$1.95
Sell Commission$2.10
Buy Tx$1.00
Sell Tx$1.10
Buy Spread$0.00
Sell Spread$0.03
Total:$6.18
  • Commission Fee – Fixed 0.3% fee on every trade.
  • Tx Fee – Also known as the stability fee or transaction fee, is calculated as the minimum of either (1000*tax_rate) or 1 TerraSDR. The Tax Rate is a parameter agreed upon by the network.
  • Spread fee – Also known as slippage or the deviation from the expected price. Users can set the maximum deviation from the expected price. If the spread is greater than the max slippage, the transaction will revert.

In our example, we set the max slippage rate to 0.5%. Our trade value is so small compared to the current mAAPL pool that the spread was negligible. However, a smaller pool like mGLXY and a larger trade value could incur a nontrivial spread fees.

Fees vs Trade Value in a large pool $29.4mil (mAAPL)

% Fee vs Trade Value in a large pool $29.4mil (mAAPL)

Fees vs Trade Value in a small pool $5.9mil (mGLXY)

As we can see from the above charts, tx fees are the most significant for smaller trade values, and commission fees are the largest for bigger trades. However, depending on the pool size and relative trade size, spread fees can become significant as well.