Trading Fee
A fee charged by a Perp DEX for executing trades.
What is Trading Fee?
Trading fees on a Perp DEX are charges applied to each trade, typically a small percentage of the trade’s notional value, paid to the platform or liquidity providers. For instance, GMX might charge a 0.1% fee on a $10,000 perpetual swap trade, equating to $10, which is distributed to liquidity providers or the protocol’s treasury.
These fees are transparently set by smart contracts and vary by platform (e.g., dYdX may charge 0.05% for makers and 0.1% for takers). Trading fees incentivize liquidity provision and cover operational costs, but high fees can deter frequent traders. Unlike centralized exchanges, Perp DEX fees are often lower and more predictable due to their decentralized nature.
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