Behind the scenes, a well-structured fee system keeps 1000x Perp fair and sustainable. It's a balancing act between revenue generation and player incentives. Let's break it down, starting with the Long position (don't worry, the Short position is just the Long position's mirror image).
Percentage Price Movement at Liquidation
The point at which a position faces liquidation (resulting in a -100% ROI) depends on your chosen leverage. This table gives you the lowdown on your liquidation threshold:
Exiting a position? Here's where it gets interesting. Smaller positive price moves carry a higher fee compared to larger moves, thanks to a decreasing PnL fee. The idea is to encourage larger positions while generating fees that align with risk and rewards. Different slopes for different position sizes mean diverse fee structures. After a price move of 10% in the favorable direction, the PnL fee gets fixed at 10%, regardless of the amount of gains. The following figure shows how the fee profile changes with position size.
Funding fee is your Contribution to 1000x Perp's Success. It’s a periodic, fixed charge that plays a vital role in keeping 1000x Perp up and running. It ensures both sustainability and fairness:
Sustainability: This fee covers operational costs, ensuring a reliable trading platform
Fairness: Applied uniformly to all users, it maintains a level playing field.
The Funding Fee occurs at regular intervals beginning after 8 hours from the opening of the position, contributing to the platform's ongoing success. Your small contribution keeps your trading adventure thrilling and secure. Cheers to the Funding Fee, powering your journey!