Fees
Trading fee
A 0.25% fee is charged on the notional value of each trade. This applies to both opening and closing a position.
Trading Fee = Notional Value x 0.0025Round-trip cost
Opening and closing a position costs 0.5% total:
Open
0.25% of notional
Close
0.25% of notional
Round trip
0.5% of notional
Example
Margin: 5 TAO, Leverage: 2x, Notional: 10 TAO
Open fee: 10 x 0.0025 = 0.025 TAO
Close fee: 10 x 0.0025 = 0.025 TAO
Total fees: 0.05 TAO
Trading fees are deducted from your margin balance.
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 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:
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.
The liquidation fee is per-market configurable (up to 10%) but currently set to 5% on all markets. 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
For short-duration trades, funding and interest are negligible and total cost is approximately 0.5% of notional plus gas.
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