🚰Liquidity Fees
What is a liquidity fee?
Liquidity fee is charged solely to some of the top traders for trades execution, ensuring the majority of DXS traders continue to benefit from our 'zero slippage and zero execution fee' policy. A liquidity fee is a required contribution to the liquidity pool. Although it cannot be withdrawn, it generates daily returns similar to a typical liquidity stake. You can learn more about providing liquidity here.
Why does DXS charge a liquidity fee?
DXS enhances trading by offering unique features such as a clutter-free interface, no slippage, narrow spreads, instant execution of trades, no delay to set stops/targets, and notably fewer clicks to do risk management. These advantages lead to a higher success rate among traders, as seen in real-time at DXS Stats. However, like any brokerage, DXS depends on incoming liquidity to outpace outflows, necessitating that top traders contribute to the liquidity pool.
How is the liquidity fee charged?
The liquidity fee functions like a conventional trading (aka execution) fee on spot exchanges, applied over total amount both when opening and closing a position. Traders are explicitly notified each time a fee is assessed during the position confirmation process. You have the option to delay execution until the next Monday when the fee rate resets.
It's important to mention that DXS does not impose an execution fee on all traders, unlike most of its competitors. Instead, a liquidity fee, which acts as a type of execution fee, is levied on certain traders. This fee is then transformed into a yielding asset for the trader and hence should not be seen as a cost to the trader, except for scalpers. Scalpers liquidity fee is a direct cost, more details below.
When is a liquidity fee due?
A liquidity fee is activated when the following two conditions are met concurrently:
Your total all-time net profit exceeds $5,000, and
Your weekly net profit surpasses $2,400.
How is the liquidity fee rate determined?
The liquidity fee rate increases with your profits, structured in tiers:
0.05% for weekly net profits above $2,400,
0.07% or tier 1 + 0.02% for weekly profits above $4,800,
0.10% or tier 2 + 0.03% for weekly profits above $7,200,
0.14% or tier 3 + 0.04% for weekly profits above $9,600,
0.19% or tier 4 + 0.05% for weekly profits above $12,000,
and so on…
Does the liquidity fee tier reset weekly?
Every Monday at 00:00 UTC, the tier resets to zero unless your all-time net profit exceeds $30,000. If it does, the liquidity fee tier resets to 1. For every additional $5,000 in all-time net profit, the tier increases by 1, up to a maximum of tier 3. For example, if your all-time net profit is $100,000 or $40,000, you start at tier 3 every Monday.
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