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Liquidity Fees
Any liquidity fees charged to a user are staked into the the liquidity pool as liquidity contributions. The only difference between a liquidity fee stake and a regular stake in the liquidity pool is that liquidity fee stakes cannot be withdrawn.
Liquidity fees are charged beyond 'profit tier' thresholds covered in the table below:
Free profit tier | The user’s total amount of realized profits minus realized losses that can be taken on the account in the given week in the particular market category without incurring liquidity fees
Profit tiers reset every Monday at midnight UTC |
Display area | ‘Market Data’ dialog box |
Free profit tier amount |
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When free tier is exceeded | Liquidity fee of 0.05% to open and 0.05% to close is staked into the liquidity pool beyond the free profit tier amount in the particular market category.
Tiers increment in discrete steps. Tier zero is 0%, tier one is 0.05%, tier two is 0.10%, tier three is 0.15% etc |
Because DXS has tight spreads and zero slippage, scalping (trading very small price movements) has enabled many traders on DXS to be consistently profitable (90%+ trades being profitable).
The Open Liquidity Protocol's (OLP) liquidity pool relies on the assumption that more traders will lose than win. In fact, all liquidity providers for all established brokerages rely on this assumption. The OLP's liquidity pool has been in operation for over 2 years and has proven the economic model:
The above graph's yellow bars represent liquidity contributed by liquidity providers, the teal bars represent excess trading losses accumulating in the liquidity pool.
The OLP's liquidity pool cannot survive if trading profits exceed trading losses over the long term. All brokerages know this and combat profitable trading strategies by widening spreads, generating artificial slippage and/or introducing trade execution delays.
DXS is committed to keeping spreads tight, having zero slippage and never using trade execution delays. Our goal is to have the highest proportion of profitable trading accounts in the industry. In order to reconcile this desire against the long term health of the OLP liquidity pool we have introduced the following profit tier rule for scalping traders:
Free profit tier | The user’s total amount of realized profits minus realized losses that can be taken on the account in the given week in the particular market category without incurring loyalty fees |
Display area | ‘Market Data’ dialog box |
Free profit tier amount for scalpers |
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When free tier is exceeded | Liquidity fee of 0.05% to open and 0.05% to close is paid to the liquidity pool beyond the free profit tier amount in the particular market category.
Tiers increment in discrete steps. Tier zero is 0%, tier one is 0.05%, tier two is 0.1%, tier three is 0.15% etc |
Any liquidity fees charged to a user flagged as a scalping trader are paid directly into the liquidity pool. Scalping liquidity fees do not stake into the pool like regular liquidity fees.
Last modified 1mo ago