Traders
On Vest, traders have almost no price impact or slippage. Instead, traders pay dynamic fees and funding rate. Fees are significantly lower than fees on most other fixed-fee perp DEXs, while funding rate is designed to be more predictable and protect the system and its traders from price risk.
Fees
Traders pay counterparties Premia based on the risk of their position. Premia is broken down into two parts:
Premia paid to LPs for their liquidity
Premia paid to ensure solvency of the exchange
All fees go to LPs and counterparties. The Vest team takes zero fees.
Funding Rate
Positions pay counterparties funding rate based on change in risk caused by price movements.
Funding is calculated continuously every second on Vest, with off-chain computation and on-chain verification using ZK proofs. This allows for a smooth funding rate curve, with rebalancing every second rather than every hour or eight hours like most perp DEXs.
Order Types
Market - Executes at the best available market price
Limit - Executes at a price pre-defined by the user
Stop-loss - Specifies a price at which to close out an open position at a loss to prevent further downside
Take profit - Specifies a price at which to close out an open position for a gain to secure profits.
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