# Fee Structure

### <mark style="color:purple;">**Introduction**</mark>

**Trade with Confidence, Pay Smart**\
Our **fee structure** is designed to **maximize rewards while keeping costs low**, ensuring traders **maintain profitability** with **transparent and predictable trading fees**.

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### <mark style="color:purple;">**What to Expect**</mark>

1. **Open Fee**
   * A **flat 0.01% fee** applies when **opening a position**.
     * Utilizing our **fUSDC** open fee is **reduced by 50%** resulting in **0.005% fee.**
     * [**(More about fUSDC)**](https://aark-digital.gitbook.io/aark-digital/about/1000x-mode/fusdc-fake-usdc)
   * This minimal cost ensures traders can **enter positions easily without high overhead costs**.
2. **Execution Fee**
   * A flat $0.6 execution fee will be applied to open a position.
3. **Close Fee**
   * A close fee is applied **only on positive PnL** using **a dynamic fee model**.
   * So, if the trade results in **a loss, no close fee is charged**.
   * The fee rate starts at 60% and linearly decreases to 20% over 30 seconds based on the position holding duration.
     * Closed immediately: 60%
     * Closed after 30 seconds or more: 20%
4. **Liquidity Fee**
   * &#x20;**0.01%-0.02% of Volume in fee when position gets liquidated** based on leverage and MMR.

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### <mark style="color:purple;">**Example: Close Fee in Action**</mark>

#### **Amy’s Win**

* Amy opens a trade 1000x leverage trade with **$500** in margin.
* She closes the position with a **$500 profit after 30 seconds**.
  * **Close Fee Calculation: $500 x 20% = $100**
* Amy’s net profit after the close fee is **$400**.

#### **Bob’s Loss**

* Bob opens a trade 1000x leverage trade with **$500** in margin.
* He closes the position with a **-$100 loss**.
* Since Bob **did not generate a profit**, the **Close Fee is $0**.

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### <mark style="color:purple;">**Why This Matters**</mark>

* **Fair & Transparent** – Traders only pay a close fee when **profitable**.
* **Low Entry Costs** – The **0.01% open fee** allows traders to **enter positions with minimal cost**.
* **Risk-Based Adjustments** – The **liquidity penalty** varies **based on leverage**, encouraging responsible trading.

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### Summary

**Open Fee:** **0.01% per position**.

* Open fee gets **reduced** to **0.005%** per position using **fUSDC.**

**Close Fee:** **20% of positive PnL** (**$0 for losing trades**).

**Liquidity Penalty:** **0.01%-0.02%, based on leverage and MMR**.
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