Long Position Round Trip
|date||mAsset||action||quantity||price||market value||gross profit||net profit|
(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
- 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.