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

# Fees

## Trading fees

MegaTAO uses a maker/taker fee model based on how your order is filled.

| Order type                                                     | Fee                   |
| -------------------------------------------------------------- | --------------------- |
| **Taker** (market order, or limit order that crosses the book) | **0.25%** of notional |
| **Maker** (resting limit order filled by another trader)       | **0%** of notional    |

Fees are charged on the notional value of the trade and deducted from your margin balance at execution.

### Round-trip cost

| Scenario    | Open  | Close | Total |
| ----------- | ----- | ----- | ----- |
| Taker/Taker | 0.25% | 0.25% | 0.50% |
| Maker/Taker | 0%    | 0.25% | 0.25% |
| Maker/Maker | 0%    | 0%    | 0%    |

### Example

* Margin: 5 TAO, Leverage: 2x, Notional: 10 TAO
* Open as taker: 10 × 0.0025 = 0.025 TAO
* Close as taker: 10 × 0.0025 = 0.025 TAO
* Total fees: 0.05 TAO

## Funding costs

Funding accrues continuously while a position is open. The cost depends on the current funding rate and how long you hold. See [Funding](/trading/funding.md) for the full formula.

Funding is peer-to-peer and direction-dependent: if the rate is positive, longs pay shorts (and vice versa).

## Interest fee

In addition to funding, an interest fee is charged to both long and short positions based on vault utilization. This compensates vault depositors for the capital used by open positions.

The interest rate follows a quadratic curve:

```
Interest Rate = 20% x utilization^2 + 0.01%
```

Where `utilization = total mark-to-market exposure / available reserves`. The interest rate is capped at 80% annualized.

Unlike funding (which is directional), the interest fee is always a cost. Both longs and shorts pay it.

## Liquidation fee

If your position is liquidated, a 5% penalty is applied to remaining margin. See [Liquidations](/trading/liquidations.md).

```
Liquidation Fee = Remaining Margin x 5%
```

You can avoid this fee entirely by closing your position before the margin ratio reaches the maintenance margin.

## Gas costs

Every transaction on Bittensor EVM requires gas, paid in TAO. This includes opening, closing, depositing, and withdrawing. Gas costs on Bittensor EVM are low — a typical trade costs a fraction of a TAO in gas.

## Total cost of a trade

```
Total Cost = Open Fee + Close Fee + Funding Cost + Interest Cost + Gas
```

For short-duration trades, funding and interest are negligible. Total cost is approximately 0–0.50% of notional plus gas, depending on whether you use limit or market orders.