Fees
Trading, settlement, skew and liquidation fees for Kimp Contracts, and how each fee is split between LPs, stakers and buyback and burn.
Kimp Contracts charge a flat trading fee, a lower settlement fee, a dynamic skew charge on trades that increase imbalance, and a penalty on liquidation. There are no funding payments, no deposit or withdrawal fees on the Kimp Pool, and no fees paid in $KIMP.
Fee schedule#
| Fee | Rate | Charged on | Recipient |
|---|---|---|---|
| Open | 0.05% of notional | Opening or increasing a position | Protocol fee split |
| Close | 0.05% of notional | Closing or reducing a position before expiry | Protocol fee split |
| Settlement | 0.02% of notional | Positions held to expiry | Protocol fee split |
| Skew charge | 0% to 0.10% of notional | Trades that increase OI imbalance | 100% Kimp Pool |
| Liquidation penalty | 0.50% of notional | Liquidated positions | Kimp Pool, keeper receives 10% |
Gas on GIWA is paid separately in ETH.
Protocol fee split#
Open, close and settlement fees are protocol fees. They are split three ways.
| Recipient | Share |
|---|---|
| Kimp Pool LPs | 50% |
| $KIMP stakers | 30%, from which reporters are paid |
| Buyback and burn | 20% |
Example: a 10,000 USD open pays a 5 USD fee. LPs receive 2.50 USD, stakers 1.50 USD, and 1.00 USD accumulates in KimpBuyback. See $KIMP utility and Buyback and burn.
Cost of a round trip#
| Path | Fees on 10,000 USD notional |
|---|---|
| Open, then close before expiry | 5 + 5 = 10 USD, 0.10% |
| Open, then hold to settlement | 5 + 2 = 7 USD, 0.07% |
Both figures exclude any skew charge. Holding to settlement is cheaper and uses the TWAP as exit.
Skew charge#
The Kimp Pool is counterparty to every position. When traders lean heavily to one side, the pool holds the other side of that imbalance. The skew charge prices that risk and pays it directly to LPs.
skewCharge = 0.10% × (|skew_after| / skewCap)^2skew_afteris the asset's net open interest, long premium minus short premium, after the trade.skewCapis the asset's net skew cap, 50% of its OI cap.- The charge applies only when a trade increases the absolute skew. Trades that reduce skew pay only the base fee.
- Because a trade cannot take skew beyond the cap, the charge is at most 0.10%.
Examples on 10,000 USD notional#
| Skew after trade as share of cap | Charge rate | Charge |
|---|---|---|
| 25% | 0.10% × 0.0625 = 0.00625% | 0.625 USD |
| 50% | 0.10% × 0.25 = 0.025% | 2.50 USD |
| 80% | 0.10% × 0.64 = 0.064% | 6.40 USD |
| 100% | 0.10% × 1 = 0.10% | 10.00 USD |
The quadratic shape keeps the charge small when the book is roughly balanced and steep near the cap. A trade that reduces skew pays no skew charge. Settlement does not carry a skew charge. See Dynamic fee curve and Skew limits and OI caps.
Liquidation penalty#
A liquidated position pays 0.50% of notional from its remaining equity. The keeper who calls KimpMarket.liquidate receives 10% of the penalty. The Kimp Pool receives the rest. On 10,000 USD notional, the penalty is 50 USD: 5 USD to the keeper and 45 USD to the pool. See Liquidation.
How fees are charged#
- The open fee and any skew charge are paid at entry, in addition to initial margin.
- The close fee and any skew charge on a reducing trade are deducted from the position's equity at close.
- The settlement fee is deducted from equity at settlement.
Changing fees#
All fee rates, the skew curve and the fee split are governance parameters. Changes pass through the on-chain vote and the 48-hour timelock before taking effect. See Governance process.