> ## Documentation Index
> Fetch the complete documentation index at: https://docs.limora.finance/llms.txt
> Use this file to discover all available pages before exploring further.

# Fees & Calculations

> Complete breakdown of trading fees and costs on Limora

Understanding the fee structure is essential for calculating your true trading costs and expected returns.

***

## Fee Overview

| Fee Type        | Rate     | When Applied            |
| --------------- | -------- | ----------------------- |
| Opening Fee     | 0.1%     | When position opens     |
| Closing Fee     | 0.1%     | When position closes    |
| Hourly Interest | Variable | Continuously while open |
| Network Gas     | Variable | Every transaction       |

***

## Opening Fee

A fee charged when your trade is matched and your position opens.

```
Opening Fee = Position Size × 0.1%
```

**Example:**

* Collateral: 100 USDC
* Leverage: 10x
* Position Size: 1,000 USDC
* Opening Fee: 1,000 × 0.0008 = **0.80 USDC**

The opening fee is deducted from your collateral immediately upon opening.

***

## Closing Fee

A fee charged when your position closes, regardless of how it closes (manual, stop-loss, take-profit, or liquidation).

```
Closing Fee = Position Size × 0.1%
```

**Example:**

* Position Size: 1,000 USDC
* Closing Fee: 1,000 × 0.0008 = **0.80 USDC**

The closing fee is deducted from your settlement amount.

***

## Interest (Borrowing Fee)

When you open a leveraged position, you're effectively borrowing funds from matchers. Interest accrues continuously while your position is open.

### Interest Calculation

```
Hourly Interest = Position Size × Hourly Rate
Daily Interest = Hourly Interest × 24
```

### Current Rates

| Pair     | Base Rate (Hourly) | APR Equivalent |
| -------- | ------------------ | -------------- |
| BTC/USDC | 0.001%             | \~8.76%        |
| ETH/USDC | 0.001%             | \~8.76%        |
| SOL/USDC | 0.0015%            | \~13.14%       |
| ARB/USDC | 0.002%             | \~17.52%       |
| OP/USDC  | 0.002%             | \~17.52%       |

<Note>
  Interest rates are variable and may change based on utilization and market
  conditions.
</Note>

### Interest Example

```
Position Size: 1,000 USDC
Hourly Rate: 0.001%
Duration: 48 hours

Hourly Interest: 1,000 × 0.00001 = 0.01 USDC
Total Interest: 0.01 × 48 = 0.48 USDC
```

***

## Network Gas Fees

Every transaction on Base requires a small ETH gas fee:

| Action         | Typical Gas Cost |
| -------------- | ---------------- |
| Open Trade     | $0.05 - $0.15    |
| Close Trade    | $0.05 - $0.15    |
| Cancel Pending | $0.02 - $0.05    |
| Modify SL/TP   | $0.02 - $0.05    |
| Deposit        | $0.02 - $0.05    |
| Withdraw       | $0.02 - $0.05    |

Gas fees vary based on network congestion. Keep at least \$1-2 of ETH in your wallet.

***

## Total Cost Calculation

### Formula

```
Total Fees = Opening Fee + Closing Fee + Interest + Gas
```

### Complete Example

<Card title="Full Trade Cost Breakdown">
  **Trade Setup:**

  * Collateral: 100 USDC
  * Leverage: 10x
  * Position Size: 1,000 USDC
  * Duration: 24 hours
  * Entry Price: \$50,000
  * Exit Price: \$52,500 (+5%)

  **Fee Calculation:**

  | Fee                | Calculation         | Amount        |
  | ------------------ | ------------------- | ------------- |
  | Opening Fee        | 1,000 × 0.1%        | 1.00 USDC     |
  | Closing Fee        | 1,000 × 0.1%        | 1.00 USDC     |
  | Interest (24h)     | 1,000 × 0.001% × 24 | 0.24 USDC     |
  | Gas (open + close) | Estimate            | \~0.20 USDC   |
  | **Total Fees**     |                     | **2.04 USDC** |

  **P\&L Calculation:**

  | Item                     | Amount                  |
  | ------------------------ | ----------------------- |
  | Gross Profit             | 1,000 × 5% = 50.00 USDC |
  | Total Fees               | -2.04 USDC              |
  | **Net Profit**           | **47.96 USDC**          |
  | **Return on Collateral** | **47.96%**              |
</Card>

***

## Fee Impact by Trade Duration

Fees affect short-term and long-term trades differently:

### Short-Term Trades (\< 24 hours)

* Fixed fees (open/close) dominate
* Interest is minimal
* Need larger price moves to be profitable

**Breakeven calculation:**

```
Breakeven Move = (Opening Fee + Closing Fee) / Position Size
          = (0.1% + 0.1%)
          = 0.2% price move needed
```

### Long-Term Trades (> 1 week)

* Interest becomes significant
* Fixed fees less impactful
* Need to factor daily interest into profit targets

**Example (1 week hold):**

```
Position: 1,000 USDC
Opening + Closing Fees: 1.60 USDC
Interest (168 hours): 1,000 × 0.001% × 168 = 1.68 USDC
Total Fees: 3.28 USDC
Breakeven: 0.328% price move
```

***

## Fee Comparison

How do Limora fees compare?

| Platform      | Trading Fee | Funding/Interest      |
| ------------- | ----------- | --------------------- |
| Limora        | 0.1% + 0.1% | \~0.001%/hour         |
| GMX           | 0.1%        | 0.01%/hour (variable) |
| dYdX          | 0.05% taker | 0.00125%/hour         |
| CEX (typical) | 0.02-0.05%  | 0.01-0.03%/8h         |

***

## Reducing Costs

<AccordionGroup>
  <Accordion title="Hold positions longer">
    Fixed fees (open/close) are amortized over longer holds. A 24-hour trade
    pays the same opening fee as a 1-hour trade.
  </Accordion>

  <Accordion title="Target larger moves">
    Aim for price moves that significantly exceed your fee breakeven point. Don't
    scalp for 0.1% moves.
  </Accordion>

  <Accordion title="Time gas-heavy actions">
    If not urgent, wait for lower network activity to submit transactions.
    Off-peak hours typically have lower gas.
  </Accordion>

  <Accordion title="Batch operations">
    If depositing and trading, do so in one session to minimize separate gas
    transactions.
  </Accordion>
</AccordionGroup>

***

## Fee Distribution

Where do the fees go?

| Recipient         | Share | Purpose                         |
| ----------------- | ----- | ------------------------------- |
| Protocol Treasury | 30%   | Development, audits, operations |
| Matchers          | 70%   | Incentive to provide liquidity  |

Interest payments are split 70% to matchers and 30% to the protocol treasury.

***

## Liquidation Fees

If your position is liquidated:

| Fee                 | Rate                       |
| ------------------- | -------------------------- |
| Liquidation Penalty | 5% of remaining collateral |
| Closing Fee         | 0.1% of position size      |

Liquidation is costly—use stop-losses to avoid it.

***

## Calculator

Estimate your trading costs:

**Inputs:**

* Collateral: \[Amount] USDC
* Leverage: \[Multiplier]x
* Expected Hold: \[Hours]
* Target Move: \[Percent]%

**Outputs:**

* Position Size
* Opening Fee
* Closing Fee
* Estimated Interest
* Total Fees
* Breakeven Price Move
* Net Profit at Target

<Note>A fee calculator tool will be available in the trading interface.</Note>

***

## Next Steps

<CardGroup cols={2}>
  <Card title="Trading Overview" icon="chart-line" href="/trading/overview">
    Return to trading fundamentals.
  </Card>

  <Card title="Lending Overview" icon="coins" href="/lending/overview">
    Learn how matchers earn fees.
  </Card>
</CardGroup>