Trading Fee
A fee charged by a Perp DEX for executing trades.
What is Trading Fee?
Trading fees on a Perp DEX are charges applied to each trade, typically a small percentage of the trade’s notional value, paid to the platform or liquidity providers. For instance, GMX might charge a 0.1% fee on a $10,000 perpetual swap trade, equating to $10, which is distributed to liquidity providers or the protocol’s treasury.
These fees are transparently set by smart contracts and vary by platform (e.g., dYdX may charge 0.05% for makers and 0.1% for takers). Trading fees incentivize liquidity provision and cover operational costs, but high fees can deter frequent traders. Unlike centralized exchanges, Perp DEX fees are often lower and more predictable due to their decentralized nature.
Related Terms
Liquidity Pool (Perp Dex)
A pool of digital assets provided by users to facilitate trading on a Perp DEX.
Stablecoin (Decentralized)
A decentralized stablecoin is a digital asset on a blockchain, designed to maintain a stable value, typically pegged to a fiat currency like USD, without relying on a central issuer.
Semantic Web
A web framework for structured, machine-readable data.
Trustlessness
A system property allowing transactions to occur without relying on trust in any single party or intermediary.
Stablecoins on Ethereum
Digital assets pegged to fiat currencies like USD, issued on Ethereum for stable value transfer, DeFi collateral, and global payments.
Solana Prioritization Fee
An optional fee added to a Solana transaction to increase its processing priority by allocating more compute units, calculated as the product of requested compute units and a micro-Lamport price per unit.