Interest
As a matcher, you earn interest from traders who hold leveraged positions. This guide explains how interest is calculated, accrued, and distributed.How Interest Works
When a trader opens a leveraged position, they effectively borrow funds from you. In exchange, they pay you interest for the duration of the position.Interest Calculation
Interest accrues continuously based on:Example
| Parameter | Value |
|---|---|
| Position Size | 1,000 USDC |
| Hourly Rate | 0.001% |
| Duration | 48 hours |
Interest Rates
Current Rates
Interest rates vary by trading pair:| Pair | Hourly Rate | Daily Rate | APR |
|---|---|---|---|
| BTC/USDC | 0.001% | 0.024% | 8.76% |
| ETH/USDC | 0.001% | 0.024% | 8.76% |
| SOL/USDC | 0.0015% | 0.036% | 13.14% |
| ARB/USDC | 0.002% | 0.048% | 17.52% |
| OP/USDC | 0.002% | 0.048% | 17.52% |
Rate Factors
Interest rates are influenced by:Utilization
Higher utilization (more matched funds) can lead to higher rates.
Asset Volatility
More volatile assets typically have higher rates to compensate for risk.
Market Demand
High trading demand may push rates up.
Governance
Protocol governance can adjust base rates.
APR vs. Actual Returns
APR (Interest Only)
Annual Percentage Rate assumes 100% utilization for a full year:Total Return
Your actual return includes both interest AND P&L:Scenarios
| Scenario | Interest | P&L | Total Return |
|---|---|---|---|
| Trader loses 10% | +2% APR | +10% | +12% |
| Trader breaks even | +2% APR | 0% | +2% |
| Trader gains 10% | +2% APR | -10% | -8% |
When Interest is Paid
Accrual
Interest accrues continuously while a position is open:- Calculated per hour (or fraction thereof)
- Tracked in real-time on the platform
- Visible in your Match dashboard
Settlement
Interest is paid when the position closes:- Added to your returned funds
- Included in final settlement calculation
- Shows in Match History
Interest Distribution
Interest flows from traders to matchers through the protocol:| Recipient | Share | Notes |
|---|---|---|
| Matcher | 100% | Full interest goes to liquidity provider |
Maximizing Interest Income
Maintain high utilization
Maintain high utilization
Match trades consistently to keep your funds deployed. Unmatched funds earn
0%.
Match longer-duration trades
Match longer-duration trades
Trades held longer accrue more interest. Scalpers close quickly, swing
traders hold longer.
Consider higher-APR pairs
Consider higher-APR pairs
Volatile pairs (SOL, ARB) have higher rates. Balance against increased P&L
risk.
Compound earnings
Compound earnings
As interest and P&L accumulate, they can be matched for additional returns.
Interest Calculator
Estimate your potential interest earnings: Inputs:- Matched Amount: 1,000 USDC
- Pair: BTC/USDC
- Hourly Rate: 0.001%
- Expected Duration: 72 hours
Interest vs. Trading Fees
Don’t confuse interest with trading fees:| Type | Paid By | Paid To | When |
|---|---|---|---|
| Interest | Trader | Matcher | Continuously while open |
| Opening Fee | Trader | Protocol + Matchers | On position open |
| Closing Fee | Trader | Protocol + Matchers | On position close |
Viewing Your Interest
Real-Time
On the Match page:- Accrued Interest: Total interest earned across all active matches
- Per Position: Interest earned on each matched trade
Historical
In Match History:- Interest earned per closed position
- Total interest over custom date ranges
- Exportable for record-keeping
Tax Implications
Interest income may be taxable in your jurisdiction. Consult a tax
professional for advice specific to your situation.
- Interest earned per position
- Dates interest was accrued
- Total annual interest income
FAQs
Do I earn interest on unmatched funds?
Do I earn interest on unmatched funds?
No. Only funds actively matched with trades earn interest. Unmatched funds
sit idle.
What if a trade is liquidated?
What if a trade is liquidated?
You still earn all accrued interest up to the liquidation. The liquidation
may also be profitable if it happens in your favor.
Can interest rates change mid-trade?
Can interest rates change mid-trade?
Rates are fixed at the time of matching. Rate changes apply to new matches
only.
Is there compound interest?
Is there compound interest?
Interest is simple, not compound. However, you can reinvest earnings
manually to achieve compounding.