🏦Funding Fee

After 8 hours, an additional funding fee applies to all open positions:

• 0.25% per hour

• Charged on total position size.

This incentivizes traders to close stale positions and ensures the protocol safety.

Example:

• You open a 100 Sonic position with 500x leverage

• Your position size is 50,000 Sonic.

• The price moves up 10%, so your profit is 5,000 Sonic.

• Your fee base is 100 (collateral) + 5,000 (profit) + 50,000 (exposure) = 55,100 Sonic.

• If you close after 8 hours, the PnL fee is 25%, you pay about 13,775 Sonic of the 55,100 Sonic profit.

• If you hold 4 more hours, you also pay a funding fee: 0.25% × 50,000 × 4 hours = 500 Sonic.

• Net payout is about 55,100 – 13,775 – 500 = 40,825 Sonic, but the profit cap is 50× collateral, so max payout is 5,000 Sonic profit + 100 collateral = 5,100 Sonic.

Congrats, you've just did a 50x! That's already a Pro move!