Protocol Commissions

Under Construction

Premia Blue (V3) Protocol Fees:

Three layers of fees: Base, Margin, and Vault.
- Base Layer amasses commissions from the greater of either 3% of premiums paid or 0.3% of the notional value transacted. On Settlement, a fee of 0.3% is collected, not to exceed 12.5% of the option's value. (Rates subject to change by vote)
- Margin Layer is a two-part equation. Firstly, it subtracts 0.4% from the Prime Rate (driven by supply and demand dynamics) charged to providers of margin lending liquidity. Secondly, it levies a 15% fee on users' liquidated positions. (Rates subject to change by vote)
- Vault Layer includes a 2% per annum management fee and a 20% fee on all positive returns for all native vaults (built in-house). (Rates subject to change by vote)
  - For Vaults developed by third parties, fees will be negotiated ad-hoc on a case-by-case basis.
Distribution of fees to Staking Users (vxPremia), Premian Republic, and the Insurance Fund.
- Staking Users are allotted 80% of Base Layer fees.
- The Operator Group receives 20% of Base Layer fees.
- The Insurance Fund collects 100% of the fees from the Vault and Margin Layers.
Parliament will reconvene every January to re-access the allocations and amend, any changes will be submitted for a vote before any action is taken. The first meeting will be January 2024.

Premia V2 Protocol Fees: Premia charges a 3% Protocol Fee to option buyers and a 2.5% Utilization Fee to LPs. 80% of fees are paid to $PREMIA staking users.

Premia Classic (V2) Fees Below:

Upon creation of a trade on the platform, a taker fee is currently charged:

Taker Fee - 3% of option premium applied at option creation

Currently, upon settlement of any trade, a utilization fee is captured.

Utilization Fee - 2.5% annual interest fee applied at settlement based on length & size

These fees are collected on a source chain level (chain independent), and allocated to vxPREMIA holders on a pro-rata basis of their percentage influence on that source chain.

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Last updated 1 year ago

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Premia Blue (V3) Protocol Fees:

Three layers of fees: Base, Margin, and Vault.

Base Layer amasses commissions from the greater of either 3% of premiums paid or 0.3% of the notional value transacted. On Settlement, a fee of 0.3% is collected, not to exceed 12.5% of the option's value. (Rates subject to change by vote)
Margin Layer is a two-part equation. Firstly, it subtracts 0.4% from the Prime Rate (driven by supply and demand dynamics) charged to providers of margin lending liquidity. Secondly, it levies a 15% fee on users' liquidated positions. (Rates subject to change by vote)
Vault Layer includes a 2% per annum management fee and a 20% fee on all positive returns for all native vaults (built in-house). (Rates subject to change by vote)
- For Vaults developed by third parties, fees will be negotiated ad-hoc on a case-by-case basis.

Distribution of fees to Staking Users (vxPremia), Premian Republic, and the Insurance Fund.

Staking Users are allotted 80% of Base Layer fees.
The Operator Group receives 20% of Base Layer fees.
The Insurance Fund collects 100% of the fees from the Vault and Margin Layers.

Parliament will reconvene every January to re-access the allocations and amend, any changes will be submitted for a vote before any action is taken. The first meeting will be January 2024.

Premia V2 Protocol Fees: Premia charges a 3% Protocol Fee to option buyers and a 2.5% Utilization Fee to LPs. 80% of fees are paid to $PREMIA staking users.

Premia Classic (V2) Fees Below:

Upon creation of a trade on the platform, a taker fee is currently charged:

Taker Fee - 3% of option premium applied at option creation

Currently, upon settlement of any trade, a utilization fee is captured.

Utilization Fee - 2.5% annual interest fee applied at settlement based on length & size

These fees are collected on a source chain level (chain independent), and allocated to vxPREMIA holders on a pro-rata basis of their percentage influence on that source chain.