> For the complete documentation index, see [llms.txt](https://docs.perpl.xyz/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.perpl.xyz/exchange/fees.md).

# Fees

Perpl uses a maker-taker model. Maker fees are paid when adding liquidity to the order book, while taker fees are paid when removing liquidity from it. The user only pays fees to open a trade, not to close it. See the fee structure below in BPS.

<table><thead><tr><th width="76.8203125">Tier</th><th>14‑day Volme</th><th data-type="number">Maker Open</th><th data-type="number">Taker Open</th><th data-type="number">Maker Close</th><th data-type="number">Taker Close</th></tr></thead><tbody><tr><td>T1</td><td>&#x3C; $5M</td><td>0.9</td><td>6.9</td><td>0</td><td>0</td></tr><tr><td>T2</td><td>≥ $5M</td><td>0.5</td><td>6</td><td>0</td><td>0</td></tr><tr><td>T3</td><td>≥ $25M</td><td>0.25</td><td>5</td><td>0</td><td>0</td></tr><tr><td>T4</td><td>≥ $100M</td><td>0</td><td>4.2</td><td>0</td><td>0</td></tr><tr><td>T5</td><td>≥ $250M</td><td>-0.01</td><td>3.5</td><td>0</td><td>0</td></tr><tr><td>VIP1</td><td>≥ $500M</td><td>-0.1</td><td>3</td><td>0</td><td>0</td></tr><tr><td>VIP2</td><td>≥ $1B</td><td>-1</td><td>2.5</td><td>0</td><td>0</td></tr></tbody></table>

At launch, all trades routed through the SDK and manual front-end traders are charged at Tier 1. Users are rebated biweekly according to their volume fee tier. Trades routed through the frontend forwarder are automatically charged the appropriate fees.

{% hint style="info" %}
**On-chain vs off-chain fees**: The smart contract stores a single flat trading fee per perpetual (maximum 10%). The 7-tier maker-taker fee model with volume-based rebates (Tier 1 through VIP2) is applied off-chain — rebates are calculated based on weekly trading volume and distributed separately. The on-chain fee represents the base rate before any tier adjustments.
{% endhint %}

### Fee Types

| Fee               | Description                                                                                                                                                                       |
| ----------------- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |
| **Trading fee**   | Charged per trade on the notional value. Configurable per perpetual, maximum 10%.                                                                                                 |
| **Recycle fee**   | Applied to orders with an expiry block. Refunded if the order is filled or self-canceled. Paid to whoever clears an expired order as an incentive. Currently set to 0 on mainnet. |
| **Insurance fee** | A portion of liquidation proceeds directed to the per-perpetual insurance fund (`liqInsAmtPer100K`).                                                                              |
| **Protocol fee**  | The remainder of liquidation proceeds after user and insurance shares.                                                                                                            |