# In-system Charges

## **SakePerp.fi In-system Charges**

* Transaction Fee

Traders pay a fixed percentage of fee when opening or closing a position. Currently, the Transaction Fee is 0.1%.

* Overnight Fee

An overnight fee is a payment that applies if the trader holds a position overnight. This is essentially an interest payment to cover the cost of the leverage that the trader uses overnight. The SakePerp overnight fee is collected every 24 hours and the fee rate is 0.05%.

* Funding Rate

Funding rates are periodic payments either to traders that are long or short based on the difference between SakePerp contract markets and Oracle prices.

When the SakePerp contract price is higher than the Oracle TWAP price, the funding rate is positive, which means long traders pay short traders.

When the SakePerp contract price is lower than the Oracle TWAP price, the funding rate is negative, which means short traders pay long traders.

SakePerp is using vAMM + Oracle price discovery mechanism, the funding only occurs when there’s no oracle price update in the last hour, which rarely happens and the rate is much smaller than other perpetual exchanges.

* MM Withdrawal Fee

When MMs remove liquidity from the SakePerp pool, a 0.5% withdrawal fee will be charged. We will reserve all accumulated withdrawal fees for existing MMs.

* Clearing Fee

Liquidation occurs when the trader’s position margin ratio falls below the maintenance margin (3%). The liquidator will get 1% of the position size or 100 BUSD (when 1% of the position size is greater than 100 BUSD). The remaining part goes to the Insurance Fund.\
