There are four types of fees in Levana, some of which can be paid or earned depending on the side you take:
- Trade fee — This fee goes to liquidity providers and the protocol when you open or update a position.
- Funding fee — A fee paid by traders taking on the popular side of a trade to other traders taking on the unpopular side of a trade. This fee is paid/earned on a block by block basis.
- Borrow fee — A fee paid by traders to liquidity providers for the capital locked on the counter-side of your position. This fee is paid on a block by block basis. You can significantly reduce your borrow fees by setting a take profit price closer to your entry price (which means you're locking up less counter-collateral).
- Delta neutrality fee — A fee that can be paid or earned by traders, depending on the side you take, to balance long and short positions. This fee is realized when you open, update, or close a position.
- Crank fee -- A fee paid by traders to cover gas cost of crank bots that perform liquidations, trigger orders and execute funding and borrow fee payments for the position.
All of these fees and/or earnings are factored into your PnL in real time.