Fees and PnL

Every fee

Fee	Current value	When	Who pays	Where it goes
Opening fee	None	—	—	—
Funding or borrow fee	None	—	—	—
Spread or price impact on entry/exit	None	—	—	—
Win haircut	7.7% base, more on small moves, 0.31 bp deadband (formula)	Every winning close	Reduces your win	Stays in the house
Payout fee	2% (fee_bps = 200) of the haircut win	Each payment of a win, whether immediate or a queue payment	Deducted from what you receive	Fee split below
Loss fee	2% of the realized loss	Losing closes and liquidations, only while the payout queue is empty	Taken out of your loss on the house side; you never pay more than the loss	Fee split below
Execution fee	500,000 lamports (0.0005 SOL) per request	Every open or close request	You, in SOL	Whoever posted the pinned Pyth update. If the request expires: ¼ to the canceller, ¾ back to you.
Account rent	≈ 0.0016–0.0022 SOL per account	When accounts are created	You, in SOL	Refundable, except the trading account's (details)
Deposit or withdrawal fee	None	—	—	—

Fee split. staker_share_bps is 5000, so stakers get floor(fee × 50%) and the rest goes to dev_fees. The staker share streams to $NOTE stakers in USDC ($NOTE). The admin can withdraw dev_fees, but only up to the amount accrued.

All fee rates are governance parameters. fee_bps can never exceed 1000 (10%). The fee on a queued win is taken when it is paid, at the fee_bps in force at that moment.

How a close settles

Notation: amounts are in USDC base units (6 decimals) and prices have 8 decimals.

dist = |exit − entry|
favourable = (exit > entry) for a long, (exit < entry) for a short

The program evaluates these cases in order:

1. Bust. If the exit price is at or past the bust price, the close settles as a liquidation: returned = 0, and the whole margin is lost no matter what the raw loss is. This applies to your own close too (Liquidation).
2. Loss (unfavourable move):

   raw_loss = ceil(notional × dist / entry)
   loss     = min(raw_loss, margin)
   returned = margin − loss

   The house receives loss − floor(loss × 2%) and the fee is split. If the queue is active, the fee is waived and the whole loss goes to the house's side bucket. Either way the trader loses loss.
3. Win (favourable move, or no move):

   raw_pnl  = floor(notional × dist / entry)
   adjusted = haircut(notional, entry, dist)

   • adjusted = 0 (the move is inside the deadband): returned = margin.
   • The queue is empty and the treasury holds at least adjusted: fee = floor(adjusted × 2%), returned = margin + adjusted − fee.
   • Otherwise the win is queued: returned = margin now, plus a payout-queue claim for adjusted. Each payment p on the claim credits p − floor(p × fee_bps / 10000), at the fee_bps in force when p is paid (The house).

$NOTE minted at close ($NOTE): a win mints on raw_pnl − floor(raw_pnl × fee_bps / 10000), its raw PnL before the haircut net of a 2% fee, whether it is paid now or queued, and even if the haircut makes it pay $0. A loss mints on loss − fee (or on loss while the queue is active), and a liquidation mints on the full margin. A close with zero raw PnL mints nothing.

returned is credited to your available balance (trading balance), not your wallet. Your margin is always returned in full on a winning close; only the win itself can queue.

Every close emits a PositionClosed event with exit, raw_pnl, adjusted, returned, queued (the claim amount), fee, the $NOTE minted and kind: 0 = loss, 1 = win, 2 = liquidation, 3 = settled at a retired market's final price.

Your net PnL is returned − margin, plus later queue payments. Loss amounts round up, and win amounts and $NOTE mints round down.

Worked examples

All examples use current parameters: BTC long, entry $100,000, margin $1,000, 10x leverage, notional $10,000.

Win: exit $101,000 (+1%), queue empty

Raw PnL	10,000 × 1,000 / 100,000 = $100.000000
Haircut win	10,000 × (0.01 − 0.000031) × 0.923 × 0.01 / 0.010185 = $90.342533
Payout fee	floor(90.342533 × 2%) = $1.806850 (stakers $0.903425, dev $0.903425)
Returned	1,000 + 90.342533 − 1.806850 = $1,088.535683
Net PnL	+$88.535683 (88.5% of raw)
House treasury	−$90.342533
$NOTE minted	(100 − 2) × mint rate on the raw PnL (at the current flat rate of 44 per $1: 4,312 $NOTE)

Same win while the queue is active (or the treasury holds less than $90.342533): you get $1,000 back now and a claim for $90.342533. Paid in a single payment at a 2% fee, it nets $88.535683. Paid in several installments, it can net slightly more, because each installment's fee rounds down separately: for example $45.171284 + $45.171249 nets $88.535684. The 4,312 $NOTE is minted at close, not when the claim is paid.

Small win: exit $100,050 (+5 bps): raw $5.000000, haircut win $3.159759, fee $0.063195, net +$3.096564 (61.9% of raw). It mints on $4.90: 215.6 $NOTE at 44 per $1.

Deadband win: exit $100,002 (+0.2 bps): raw $0.200000, haircut win $0 (inside the 0.31 bp deadband), so you get your margin back with no gain, but it still mints on $0.196: 8.624 $NOTE.

Loss: exit $99,000 (−1%), queue empty

Loss	ceil(10,000 × 1,000 / 100,000) = $100.000000
Returned	$900.000000
Loss fee	$2.000000 (stakers $1, dev $1), taken from the $100
House treasury	+$98.000000
$NOTE minted	98 × mint rate (at the current flat rate of 44 per $1: 4,312 $NOTE, the same as the +1% win)

Loss bigger than the margin: a loss is capped at the margin. But at the bust price, which is before zero equity, the position settles as a liquidation anyway (Liquidation).