Fee Generation

Fees incurred from activities within Moby are structured as follows. The fees generated within Moby are collected at 7-day intervals.

Position Neutral Fees

  1. OLP Buying / Selling Fee

  2. Spot Swap Fee

  3. Position Open / Close / Settlement Fee

  1. Model Price

  2. Risk Premium

  1. Clearing House Fees

  2. Prime Brokerage Fees

Position Neutral Fees

Fees
Description

1. OLP Buying / Selling Fee

Each OLP holds a specific Target Ratio for the consisting assets. Fees are applied based on the deviation between the target ratio and the changed asset composition ratio of each OLP due to Minting/Closing.

2. Spot Swap Fee

Swaps, which take place within OLPs, charge fees ranging from 0.2% to 0.8%, and are imposed based on the impact of the Target Ratio and changes in asset composition ratio just like Buying/Selling OLP tokens.

3. Position Open / Close / Settlement Fees

Position Open / Close Fee

  • Call / Put Spread: When a trader opens or closes spread positions, a fee equivalent to 0.03% of the notional value of positions is charged

  • Call / Put Options: When a trader opens or closes naked options positions, a fee equivalent to 0.06% of the notional value of positions is charged

  • The fee cannot exceed 12.5% of the options price

  • Additionally, a small amount of ETH is requested for smooth transaction processing with the Keeper bot.

Settlement Fee

  • A Settlement Fee of 0.02% is incurred based on the nominal value of the position

  • Settlement Fee also cannot exceed 50% of settlement payoff

Fees
Description

4. Mark Price

Mark Price is subject to variation based on multiple factors, including market conditions and the risk profile of the OLP. The full amount, representing 100% of Mark Price, is disbursed to Moby's LPs.

5. Risk Premium

Fees associated with Risk Premium is subject to variation based on multiple factors, including market conditions and the risk profile of the OLP.

Fees
Description

6. Clearing House Fees

Clearing Fee

  • Clearing House charges fees when it closes OLPs' positions to redeem collateral, thereby enhancing capital efficiency

  • These fees are utilized for operations such as running bots and covering gas fees

Binding Fee

  • Similarly, Binding Fees are received proportionally based on the amount of collateral reclaimed

  • These fees also contribute to covering bot operations and gas fees

7. Prime Brokerage Fees

Borrowing Fee

  • A Borrowing Fee is imposed on traders who borrow asset from Prime Brokerage Pool to trade on leverage

  • This fee is disbursed as compensation to liquidity providers on the Prime Brokerage Pool

Liquidation Fee

  • When traders borrow asset from Prime Brokerage Pool to trade on leverage, their positions may be subject to liquidation depending on market conditions

  • In the event of liquidation, the entity executing the liquidation is rewarded with a Liquidation Fee

Currently, Clearing House Fees are not applied;

There will be more updates in the near future.

Currently, Prime Brokerage Fees are not applied;

There will be more updates in the near future.

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