> For the complete documentation index, see [llms.txt](https://docs.vest.exchange/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.vest.exchange/overview/traders/fees.md).

# Fees

**Trading fees**

There is a 0.01% (1bps) taker / maker fee on every trade. The fee is charged upon position open and position close.

**Risk premium & rebate**

A risk premium, $$\pi\_t^p$$, is charged when a trade increases system risk. $$\pi\_t^p$$ is given by

$$\pi\_t^p = \left( \rho(X\_{t+\tau}(\theta')) - \rho(X\_{t+\tau}(\theta)) \right)^+$$

Where

* $$\rho$$ is the EVaR risk measure
* $$\theta = (q, C, P, L)$$ is the exchange state before the trade
* $$\theta' = (q + q\_t,, C + q\_t^\top S\_t,, P,, L)$$ is the state after the trade

A rebate is implied when a trade reduces system risk. Specifically, if $$​​\rho(\theta') < \rho(\theta)$, then $\pi\_t^p = 0$$.

Note that the risk reduction improves portfolio hedging (via negative Euler allocation) and increases LP call-spread value.<br>

**Example calculation**

Scenario: A trader closes 100 ETH of net-long exposure.

* Current EVaR:
  * $$\rho(\theta) = $1{,}000{,}000$$
* Post-trade EVaR:
  * $$\rho(\theta') = $950{,}000$$

Then, the marginal risk change is given by

$$\rho(\theta') - \rho(\theta) = -$50{,}000$$

With the result

$$\pi\_t^p = \max(950{,}000 - 1{,}000{,}000,, 0) = 0$$

So, we have seen that funding rates decrease for correlated positions and LP call spreads improve according to

$$\Delta C\_{K\_1, K\_2} = C\_{K\_1, K\_2}(\theta') - C\_{K\_1, K\_2}(\theta)$$.

Thus, there is no explicit rebate payment in this case. So, risk reduction benefits all participants.

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