Protocol fees
Trading fees
| Fee | Rate | Who pays it? |
|---|---|---|
| Opening fee | None | — |
| Closing fee | None | — |
| Funding fee | None | — |
| Profit fee | 2% of profit after settlement deductions | Deducted from the winner's profit |
| Loss fee | 2% of the realized loss | Taken from the LP's loss proceeds; no extra charge to the trader |
| Liquidation fee | 2% of liquidated margin | Taken from the forfeited margin |
The price buffer and asymmetric profit deduction are additional parts of profit settlement. They are separate from the 2% profit fee.
Where do fees go?
Collected protocol fees are split in two: 50% goes to TACO stakers in USDT under the protocol's distribution rules, and 50% goes to the platform. Of the 2% profit fee, for example, 1% of profit reaches stakers and 1% reaches the platform.
If a trade has a referrer, the split becomes 10% to the referrer, 50% to stakers and 40% to the platform. During the referee's first month of trading, the referee also gets 5% of their fees back, so the platform's share is 35% for that month. The referral share and the first-month rebate are percentages of the fees, not of the trader's profit or loss, and both come out of the platform's half; the stakers' half is unchanged. Referrals do not create extra TACO. See Referrals.
| No referrer | With referrer | With referrer, referee's first month | |
|---|---|---|---|
| TACO stakers | 50% | 50% | 50% |
| Platform | 50% | 40% | 35% |
| Referrer | — | 10% | 10% |
| Referee rebate | — | — | 5% |
What changes when profit settlement is queued?
Fees are collected for distribution only when the settlement queue is empty and LP liquidity can cover profitable positions and fees.