# Fee Structure

Fees will be split as follows:

* 50% to TLP holders
* 30% to staked TRY
* 20% to [POL](../../key-components/liquidity-pool#protocol-owned-liquidity-pol)

## Position Fee <a href="#position-fee" id="position-fee"></a>

Tradeify charges position fees when traders open and close positions. The position fee is fixed at 0.1% and calculated as follows:

* Open Fee: 0.1% × Asset Price × Position Size
* Close Fee: 0.1% × Asset Price × Position Size

The collected position fees are allocated between TLP stakers, TRY stakers, and POL.&#x20;

## Funding Payments <a href="#funding-payments" id="funding-payments"></a>

After traders borrow pooled assets for positions, Tradeify charges funding payments, which can be seen as borrowing fees from positions. The funding payment is collected every 8-hour. Long and short positions funding are calculated separately

fundingFeeRate = max{utilization × limitRate, baseRate}baseRate (Annualized)

The funding payment fees are allocated between TLP stakers, TRY stakers, and POL, the same as the collected position fee allocated. The baseRate and limitRate are according to change in the future as the team makes continuous evaluations.

## Liquidation Fee <a href="#liquidation-fee" id="liquidation-fee"></a>

The maintenance margin (MM) on Tradeify is 1%, and the liquidation fee is 0.1%. Therefore, 0.1% (if it exists) margin will be collected as the fee when a position is liquidated. The remaining margin after liquidation will return to traders.The liquidation fee will be shared between TLP stakers, TRY stakers, and POL, the same as the collected position fee allocated.

## Spread <a href="#spread" id="spread"></a>

Tradeify offers 0% spreads under the Sui market. The spreads under other coin markets are fixed at 0.12%.
