Palmswap
  • šŸ“šOverview
  • šŸ“–Get Started
    • Create a Wallet
    • Get BEP20 Tokens
    • Connect Your Wallet
  • šŸ›£ļøRoadmap
  • ā”FAQ
  • Protocol
    • 🌓Exchange
      • How to Trade
      • Orders
      • Use Orders
      • Leverage
      • Edit Collateral
      • Liquidation
      • Open Interest Limits
      • Trading Fees
      • Borrow Fee
    • 🌐Referral Program
  • Ecosystem
    • šŸŽļøTrade 2 Earn
    • šŸÆLiquidity Providing (PLP)
    • šŸ“ˆStaking
      • V1 to V2 Migration
    • ā™»ļøRewards Summary
  • Token Economy
    • 🤲PALM
      • $PALM Distribution
      • Burn
  • Developers
    • Architecture and Infrastructure
    • Smart Contracts
    • Audit
  • Brand & Logo
Powered by GitBook
On this page
  1. Protocol
  2. Exchange

Borrow Fee

A borrow fee RRR is put in place for each side of each asset. This is the fee paid to the counter-party of your trade to incentivize traders to keep the total position size from diverging significantly with traders total collateral, thus providing further risk mitigation measures for the protocol. Borrow fee is dynamically updated for each asset every interval (1 hour) and calculated as follows:

R=k(AssetsBorrowedTotalAssetsInPool)āˆ—0.01%R=k\left(\dfrac{Assets Borrowed}{Total Assets In Pool}\right)*0.01\%%R=k(TotalAssetsInPoolAssetsBorrowed​)āˆ—0.01%

kkk is a parameter that is a function of each asset's historical volatility and is updated regularly as market conditions change.

PreviousTrading FeesNextReferral Program

Last updated 1 year ago

🌓