💳Trading Fees

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, gas etc).

In this section we’ll break down some of the main fee’s that a user will incur.

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.

Open Fee

When a user enters a pair trade, Pear will charge 0.13% 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.

Close Fee

When a user closes a pair trade, Pear will charge 0.13% 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.

Edit Collateral Fee (Isolated Mode only)

In the advanced trade section, users have the ability to manage their position, such 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).

Execution Costs

Pear v1 sources its liquidity from GMX, Vertex and SYMM. 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 SYMM, this execution cost is roughly the spread that the market maker takes of around 4-6bps.

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 every trade after these fees on the Pear front end. The values seen 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 the return.

On September 9th Pear reduced its fees from 0.25% to 0.13%. Prior to this trading costs were partly subsidised via the LTIPP grant awarded by the Arbitrum DAO.