Fees

This section explains how costs are assessed when you trade on Trendle. Fees are simple by design: you pay a one-time charge only when opening a position; closing a position or canceling an unfilled order does not incur entry fees. All charges are computed from your opening notional (collateral × leverage) so that P&L from index movements remains transparent and comparable across positions.

Entry fees (one-time at open)

$$\text{EntryFee} = \big(\text{TradingFee\%}+\text{ImbalanceFee\%}\big)\times\big(\text{Collateral}\times\text{Leverage}\big)$$

• Where it goes: sent to the treasury.

• When it’s charged: only once when your order executes to open a position.

• Not charged: on close OR if an order is created and later canceled.

• Accounting: the entry fee is taken immediately as a realized loss on the position, but does not change future P&L math. Price P&L is always computed off

Position Size = Collateral × Leverage (fees excluded)

Trading fee

• Type: fixed % of (Collateral × Leverage) at open.

• Set by: contract admin.

Imbalance fee

• Purpose: discourage crowding, charged ONLY when opening on the prevailing side

• Scope: computed per token/index pair.

• OI definition: open interest uses margin × leverage (opening notional)

• Prospective sizing: the new position’s size is included when evaluating the imbalance.

• Virtual liquidity: by default, each side has 1k virtual dollar, and these are included when calculating the ratio of the sides.

• Schedule: linear between two points:

  • starts at 0.45% when OI ratio = 3:2 (1.5×),

  • increases linearly to 3% at OI ratio = 10:1.

  • Below 3:2, the imbalance fee is 0%.

• Charged: once at open (part of Entry fees)

Leverage

• Range: fractional value from 1× (no leverage) to 5× (max).

• Effect: multiplies price P&L, entry fees, and funding PnL proportionally

  • Example: with 3× leverage, both your gains/losses from index moves and your fees/funding scale by 3×

Quick example

• Collateral = 1,000; Leverage = 3× → Position Size = 3,000

• Trading fee 0.20% → 6.00

• If market is long-heavy at a 4:2 OI ratio (≥ 3:2) and you open a long: suppose Imbalance fee = 3.0% → 90.00

• EntryFee total = 96.00, taken immediately. Your future price P&L still references the full 3,000 position size