Much like every single Centralised or Decentralised Exchange (CEX or DEX), Pear Protocol charges a fee when users trade on the platform. The fees are paid per transaction will have some fixed elements (open position fee) and some variable elements (funding rate, gwei etc).
In this section we’ll break down some of the main fee’s that a user will incur in Pear v1.
Please note, Pear Protocol is a fully decentralised trading dApp, and as such over time intends to pass back as much of the fee generation as possible to either the Pear DAO or to tokenholders.
When a user enters a pair trade, Pear will charge [0.25%] on the position size as an trade open fee. This covers both the long leg and the short leg, and helps offset some of the costs that the protocol incurs when facilitating this service.
When a user closes a pair trade, Pear will charge [0.25%] on the position size as a close trade fee. Again, this covers both the long and the short leg, and is necessary to offset the costs that the protocol incurs.
For users that did not select the default option of Opening and Minting their position as an NFT, they will still have the flexibility to mint on demand. The cost of this service is a fixed price of $1. This helps cover the costs incurred by Pear Protocol in offering this service..
Edit Collateral Fee
In the advanced trade section, users have the ability to manage their position, including closing individual legs as well as adding collateral to one of the legs. Given there are onward fees in doing so, Pear charges a small fee of 0.1% on the collateral size (no leverage considerations).
Pear v1 sources its liquidity from both GMX and Vertex. The onward execution costs of these platforms are borne by the user in addition to the platform fees they pay to Pear. Those fees are constantly evolving and as such we encourage the reader to read the documentation on GMX and Vertex respectively.
For reference, Pear is a taker (not a maker), since all trades are currently opened as market orders and not limit orders.
However, we do represent the net exposure of your trade after these fees on the Pear front end. The values you see there include all the costs incurred to open the trade, but please do be mindful of the variable costs including the funding rate and borrowing costs as these can eat into your return.