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Qilin Protocol charges traders a 0.1% fee for trading. The fee is collected when the trader closes the position. The fee is based on the closing price/liquidation price, the size of the position, and the funding rate and is transferred directionly to the liquidity pool. Added fees will cause the LP Token’s price to change and are shared as liquidity providers redeem their deposits with their LP Token.
Qilin Protocol charges funding rates based on the number of positions of the trader on a per-block basis. The fee is settled after the user closes his position. The funding fees collected are transferred directly to the liquidity pool. Similar to the trading fee, funding rate fees cause a change in the price of LP Token when transferred to the liquidity pool and are shared when LP Token holders remove liquidity.
Qilin Protocol V2 also includes a protocol fee that is charged for the Qilin community and ecosystem development. The protocol fee is a percentage of the trading fee, funding fee, and liquidation fees. The protocol fee can be adjusted through the governance system.