🐣PnL Fee Model
The Profit Fee is the protocol’s core revenue driver and its main protective moat against manipulation.
How it works:
0–2 min (lock)
100%
2–8 min
Drops sharply to 70%/80%/85% based on user tier level
8 min–8 hrs
Linear drop to 25%
After 8 hrs
Fixed at 25%
Detailed logic:
100% fee for 0–2 min: You can’t close the position to prevent S price manipulation.
After unlock: Fee drops sharply based on your staking tier:
No staking: 85%
Tier 1 staker: 80%
Tier 2 staker: 75%
Tier 3 staker: 70%
Tier 4 staker: 65%
Over the next 7 hours, 58 minutes, the PnL fee linearly decreases to a minimum of 25%.
Once you hit 8 hours, the fee stays fixed at 25% untill the position is closed or liquidated.
The PnL fee is always charged on the entire position size:
(collateral + unrealized profit + leveraged exposure).
Example:
You deposit 10 Sonic with 500x leverage, so your position size is 5,000 Sonic.
The price moves up 20%, so your unrealized profit is 1,000 Sonic.
Your total position size for the fee is 10 (collateral) + 1,000 (profit) + 5,000 (exposure) = 6,010 Sonic.
If you close after 10 minutes, your PnL fee is about 68%, so you pay ~4,087 Sonic in fees.
Your net would be 1,923 Sonic, but the profit cap is 50x collateral, so you will be paid 500 Sonic max.
Net profit is 490 Sonic.
Congrats, you've just did a 49x! Not bad for a rookie!
Thing to keep in mind:
PnL fee drops to minimum of 25% after ~8 hours.
But after 8 hours, you start paying funding at 0.25% per hour on the same total size.
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