DXS Wants You to Win
DXS's only source of revenue is from holding fees. Winning trades are held longer on average, hence our interests are aligned with traders
DXS wants you to win. The reasoning and mechanics behind this is unique.
We completely separated the insurance pool (that provides the liquidity for trading profits) from the DXS trading platform.
Our insurance pool is funded by traders and speculators that contribute to the insurance pool in return for a healthy recurring income.
DXS is not invested in the insurance pool and does not profit from its operations.
The outcome of separating the DXS trading platform from the trading liquidity is that we’re on your side as a trader. It’s better for us when you win.
DXS has one, and only one, source of income, which is holding fees.
DXS charges holding fees on the size of a position, irrespective of whether you go long or short:
Holding fees are deducted from a trading position every 8 hours, counted individually for every position. No holding fees are charged for trades that are opened and closed within the first 8 hours.
It doesn’t matter if you win or lose. If the trade doesn’t last more than 8 hours, we don’t make a cent.
You may not be interested in the duration of your trade, but as a trader you’re looking for profit.
You close losing trades faster to limit your losses, and you hold winning trades open longer, for the profits.
The longer a trade is held open, the more holding fee income for DXS.
More winning trades means more holding fee revenue for us.
It doesn’t go to us - we can’t touch it.
These funds are dispersed by an automated protocol in the following manner, after every 8 hour session:
- The first 3% is distributed to liquidity providers, in return for funding the trading platform
- Another 1% of losses goes towards a bug fund to reimburse traders that lose funds due to bugs on DXS
- The remainder is used to pay the profits to the winning trades for the session
- If there is anything left over after this, it gets added to the insurance pool
The insurance pool grows when there is a surplus of losses, and shrinks when there’s a surplus of profits. It’s autonomous, self-sustaining, and independent of the DXS trading platform.
If most traders are winning and the insurance pool is shrinking to pay all your profits, DXS doesn’t lose. We win. More winning traders means more income for us.
That’s how we win together.