# Fee Model

<figure><img src="/files/4YanPj8F7nP4Ow174bg1" alt=""><figcaption></figcaption></figure>

Fees are designed to be predictable for traders and sustainable for LPs. By default, BasePerp avoids fixed opens/closes and funding; the protocol earns mainly when traders realize profits.

### 7.1 Zero Fixed Commissions (ZFC) — Win-Based Fee

ZFC removes fixed open/close fees and funding by default. A fee is charged only when a position closes in profit; loss-making or forced-liquidation closes do not pay this fee.

**Formula**: winFee = profitFeeRate × max(realizedPnL, 0)&#x20;

profitFeeRate is set per market and any change is timelocked.

A small keeper fee (dynamic, market-specific) covers gas for upkeeps/liquidations and is shown to users before execution.

### 7.2 Hybrid Mode (ZFC + minimal fixed fee)

Some thin or congestion-prone markets may enable a tiny per-order fixed fee in addition to ZFC to deter spam and cover ops. Scope, size, and toggles are public and change only via timelock.

* Enabled per market with published parameters
* Purpose: maintain liveness under stress without materially changing breakeven

### 7.3 Optional Funding/Financing (if enabled)

If maker/taker incentives require it, a lightweight funding index can be activated for specific markets. Parameters (reference index, cadence, clamps, off-switch) are disclosed. Default: off, to avoid funding drift on ZFC markets.

### 7.4 Worked Example

Assume: notional 50,000; realizedPnL 1,200; profitFeeRate = 15%; keeper fee = 2.

* winFee = 0.15 × 1,200 = 180
* Total fees = 182

If the trade closes at a loss (realizedPnL = −1,200):

* winFee = 0
* Total fees = 2 (keeper only)

### 7.5 Distribution & Treasury Policy

Revenue sharing initially favors liquidity growth, then shifts toward sustainable operations after stability milestones.

* **Sources**. Win-based fees (via profitFeeRate), hybrid fixed fees (if any), liquidation fees, buffer-tier withdrawal fees, and minor sources.
* **Sharing**. Bootstrap phase may route up to 100% of trading revenue to LPs; protocol share phases in later via timelock.
* **Use of funds**. Development, audits, monitoring, security backstop rewards, incident reserves, and ecosystem grants; summarized in periodic public reports.


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