> For the complete documentation index, see [llms.txt](https://automatic-defi.gitbook.io/automatic-perpetual-futures-exchange/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://automatic-defi.gitbook.io/automatic-perpetual-futures-exchange/token-economics/platform-fees.md).

# Platform Fees

## Leverage and Swaps

* Open Position: .1% of position size
* Close Position: .1% of position size
* Hold Position: .0085% of position size/hr
* Daily Borrow: .1% of position size per 24 hr period held
  * Nightly Borrow: After a position has been open for 8 hours, traders are eligible to receive 10% borrow fee discounts on up to two positions left open overnight, per night (based on the IP address captured by Automatic. It may only be set once per wallet).
* Swap: .295% 

## Platform Maintenance

When a user (an ALP liquidity provider, for example) earns revenue from trader losses, Automatic subtracts a fee from total proceeds (gross revenue) to pay for data feeds, keeper contract fees, and watcher contract fees; users receive the entirety of all other revenue (net fees). 

This fee applies to both traders, ALP platform liquidity providers, as well as ATG and rATP stakers. 

These fees are required for continuous operations of Automatic. Without these fees, Automatic cannot sustain the costs of data feeds due to the rapid pace at which Automatic's IRT Hybrid Oracles fetch data. 

These fees are adjustable and subject to change based on the usage demands of the platform. The default fee is pre-set to .4% (.004) of gross trade volume.

* Keeper Expenses 
* Watcher Expenses
* IRT Hybrid Oracle Expenses
* RPC Expenses
* Platform Operation Gas Fees
* Hosting expenses

## Liquidity Pairing

* Fees from the Liquidity Pairing serve 4 purposes:

<details>

<summary>Reinforce the Automatic Foundation Guard (40%)</summary>

40% of LP fees are used to strengthen the AFG to account for times of high volatility

* 20% to the rATP AFG
* 20% to the ATG AFG

</details>

<details>

<summary>Acquire additional ALP to enhance protocol-managed liquidity (40%)</summary>

* Increases protocol-managed liquidity (TVL) holdings, enabling traders to capitalize on larger long and short positions (40%)

</details>

<details>

<summary>Purchase and burn rATP to reduce supply (10%)</summary>

Removes excess tokens from circulation, strengthening fee capture among existing holders

</details>

<details>

<summary>Purchase and burn ATG to reduce supply (10%)</summary>

Like with rATP, 10% of LP fees are used to remove excess tokens from circulation, strengthening fee capture among existing holders

</details>

{% content-ref url="/pages/ogYa2nALoDUVUoOxdzFj" %}
[v3 Dex Liquidity Pairing](/automatic-perpetual-futures-exchange/token-economics/v3-dex-liquidity-pairing.md)
{% endcontent-ref %}

<figure><img src="/files/a8dVg9LLA2DUI0jvKl9w" alt=""><figcaption><p>Automatic DeFi. Copyright 2023. All rights reserved.</p></figcaption></figure>


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