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Protocol fees are generated in three ways:
This table contains an explanation on each type of fee:
Collateralized Debt Position (CDP) Fees
Network fees are charged for each transaction on Carbon.
Here are the current network fees for each action:
- Creating an order - Free
- Withdrawing assets - Free (L1 or relayer fees apply separately)
- Claiming staking rewards - 1 SWTH (per validator)
- Committing or unlocking LP tokens - 30 SWTH
- Claiming LP rewards - 30 SWTH (per pool)
- Submitting a governance proposal - 1000 SWTH
- Creating a liquidity pool - 1000 SWTH
- Creating a market or token - 5000 SWTH
- All other non-EVM transactions - 1 SWTH
- EVM transactions - varies depending on EVM gas usage
Carbon uses a maker-taker model for determining trading fees. This means that there are two types of trading fees on Carbon — Maker and Taker fees:
- Maker Fees: Fees charged to users who create orders that are not immediately filled by existing orders on the order book. These users are known as "makers" because they are adding liquidity to the exchange by creating new orders.
- Taker Fees: Fees charged to users who place orders that are immediately filled by existing orders on the order book. These users are known as "takers" because they are taking liquidity from the exchange by executing trades against existing orders.
An account's specific trading fees are determined by their fee tier, which is in turn derived from the amount of SWTH held or staked by the account. The more SWTH held or staked, the lower the trading fees. This trading fee discount can be delegated to another Carbon account.
The table below shows are the default fee tiers for spot and derivative markets.
Derivative Markets (Futures & Perpetuals)
*The calculation for SWTH points as follows:
- Every 1 staked
- Every 1
rSWTHin an account's available balance counts as
- Every 1
SWTHin an account's available balance counts as
- Tokens in open orders or liquidity pools do not count towards SWTH points!
Please note that specific markets may have different fee structures, and the above tiers are subject to changes by Carbon governance. For the most updated fee tier information, visit the markets page on the Carbonscan explorer.
CDP fees include fees on borrowing interest, fees on liquidation bonus, and stablecoin interest.
- The borrowing interest (i.e. interest that borrowers pay lenders) is set by the utilization rate (i.e. supply and demand). A fee (currently 10%) is imposed on the interest that is paid out, and this portion goes towards block rewards instead of the lender.
- When a position is considered unviable, they are open to being liquidated. This is done by allowing any user (the ”liquidator”) to repay the position’s debt. In return, the liquidator seizes the position’s collateral equal to the repaid debt’s value minus a liquidation discount. This results in a bonus amount of collateral seized, and a fee (currently 10%) is imposed on this bonus, that goes towards block rewards instead of the liquidator.