🚰Liquidity Levy

What is a Liquidity Levy?

The Liquidity Levy is a volume-based execution fee applied to both the opening and closing of trading positions. While it functions as a regular trading execution fee, it uniquely contributes to your non-refundable stake in the platform's liquidity pool.

Unlike conventional volume-driven fees that represent a direct cost, the Liquidity Levy is designed to benefit you by generating daily payments. These daily payments will continue until the total Levy amount is fully paid back to you, plus an additional 28%.

By contributing to the liquidity pool through the Levy, you become a liquidity provider. However, it is important to note that you are restricted from withdrawing any portion of your liquidity stake that has been generated through the payment of a Liquidity Levy.

Why does DXS charge a Liquidity Levy?

DXS charges execution fees just like the majority of financial trading platforms. However, in the case of DXS, such fees are directly and fully credited in their entirety to the liquidity pool, where they act as part of the autonomous market making engine. This structure serves to shelter DXS traders from being targeted by market makers trading against them while simultaneously protecting their trading data.

How are Liquidity Levy rates determined?

Liquidity Levy rates are structured in a tiered system based on your weekly net profit thresholds. The rates progressively increase with your profits for each subsequent tier. The tiers are as follows:

Tier 1: 0.05% for weekly net profits below $4,800, Tier 2: 0.07% (Tier 1 + 0.02%) for weekly net profits above $4,800, Tier 3: 0.10% (Tier 2 + 0.03%) for weekly net profits above $9,600, Tier 4: 0.14% (Tier 3 + 0.04%) for weekly net profits above $19,200, Tier 5: 0.19% (Tier 4 + 0.05%) for weekly net profits above $38,400, ...and so on.

The Levy tiers reset every Monday at 00:00 UTC.

How am I notified about the Liquidity Levy?

You will receive an explicit notification of the applicable Liquidity Levy rate during the position opening and closing confirmation process. This allows you to review the fee before execution. You have the option to defer the execution until the next Monday when the tier resets. The Levy is automatically deducted from the margin of each trading position.

Does the Liquidity Levy tier reset weekly?

Every Monday at 00:00 UTC, the tier resets to 1 unless your all-time net profit exceeds $38,400. If it does, the Liquidity Levy resets to 2. For every additional $9,600 in all-time net profit, the minimum tier increases by 1, up to a maximum of tier 5.