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Fairground does not use funding rates. Instead, a fixed fee is charged on every order or position change. The fee is split between minority-side rebates, the Insurance Fund, and protocol fees, based on market conditions. For position-level fee and rebate detail from the API, on-chain parameters, and integration-oriented notes aimed at liquidity providers and integrators, see Market makers / LPs.

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Trade fee mechanics

Every position change incurs a trading fee on the notional changed. The fee rate is a per-market parameter in the market’s fee configuration. All markets currently charge 4.5 bps (0.045%). The fee applies whether you are opening, increasing, reducing, or closing a position. Examples on this page use the current 4.5 bps rate.

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When fees are charged

  • Open / increase: Fee is deducted when the order is placed.
  • Reduce / close: Fee is charged when the order is matched and filled.
If an open/increase order is canceled before fill, the pre-deducted fee is reimbursed.

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Open/increase sizing impact

For open/increase orders, fee is taken from deposited margin before exposure is finalized, so the resulting notional is slightly below margin * leverage. For deposited margin M, fee rate f (0.00045 at 4.5 bps), and target leverage L:

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Where fees go

Each matched side pays the trading fee on its matched notional. For routing purposes, total fees for a match are:
Those fees are allocated to:
  1. Minority-side rebates
  2. Insurance Fund
  3. Protocol fees
The split is governed by market parameters: The minority-side share E scales linearly with imbalance I up to a cap:
For a match with total trade fees T:
  • Minority-side rebates: E * T
  • Insurance Fund: E_I * (1 - E) * T
  • Protocol fees: (1 - E_I) * (1 - E) * T
When executable long and short notional are balanced, imbalance is zero, so E = 0 and no minority rebate is generated for that matching cycle.

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What minority side means

The protocol groups executable orders into two order sides:
  • Long-side orders: opening long positions and closing short positions.
  • Short-side orders: opening short positions and closing long positions.
Executable notional is the notional from orders that can match at the current oracle price and their threshold configuration. The matching cycle compares:
The side with lower executable notional is the minority side for that matching cycle. If the sides are equal, there is no minority-side rebate accrual for that cycle.
When a user action triggers matching, the triggering order is excluded from the imbalance calculation. It still contributes to matched notional and fee accounting if it is filled.
Liquidation reduce flow can change closing-side totals and therefore imbalance and fee routing. See Liquidation.

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How rebates are earned

Rebates accrue to open positions on the position side that corresponds to the minority order side, tracked through two cumulative meters, one per position side. After a matching cycle with an imbalance, the meter for the matching position side increases by a per-unit amount:
When the long order side is the minority, the long-position meter increases. When the short order side is the minority, the short-position meter increases. Open positions on the matching side accrue from any meter increase that occurs after their own snapshot, and realize that accrual on reduce or close.
New positions do not inherit past meter values. When your position opens, the protocol records the current meter value as your snapshot, and you accrue only from later meter increases.

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Position lifecycle behavior

On reduce and close fills, meter payout uses the meter value before the current cycle’s update. A close does not receive accrual from the same cycle that closes it. A new open that fills in the same cycle snapshots the pre-update meter, so it does pick up that cycle’s increase.

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Quick reference

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What rebates are not

  • Rebates are not funding payments and do not create periodic holding costs.
  • Majority-side traders do not pay an extra “negative rebate” beyond the standard trading fee.
  • A placed order is not guaranteed to earn rebates. Rebate accrual depends on filled matches, imbalance, and the position-side meter.
  • Historical meter values are not a current rebate opportunity. Current rebate indicators should be based on recent meter changes, not raw cumulative meter levels.