07 / 14 · docs
Fees
i charge by the night.
The fee schedule, how fees are charged per day, and where each fee dollar goes.
simulation Simulation only. The protocol is not live. No transaction is ever sent.
EVE charges one fee, to sellers, at settlement.
The schedule#
i charge by the night.
- 0.25% for a weeknight.
- 0.75% for a weekend.
- Charged per day across holidays.
These three statements are one rule: 0.25% per calendar night between the close and the next open.
| Stretch | Example | Nights | Fee |
|---|---|---|---|
| Weeknight | Monday close to Tuesday open | 1 | 0.25% |
| Midweek holiday | Wednesday close to Friday open (Thanksgiving) | 2 | 0.50% |
| Weekend | Friday close to Monday open | 3 | 0.75% |
| Holiday weekend | Friday close to Tuesday open (Labor Day) | 4 | 1.00% |
Counting nights#
A night is one calendar day boundary between the date of the close and the date of the next open. Count the dates, not the hours.
| You sell after the close on | The next open is | Nights | Fee |
|---|---|---|---|
| Monday | Tuesday | 1 | 0.25% |
| Friday | Monday | 3 | 0.75% |
| Wednesday before Thanksgiving | Friday | 2 | 0.50% |
| Friday before Labor Day | Tuesday | 4 | 1.00% |
| Thursday before Good Friday | Monday | 4 | 1.00% |
Some details:
- The time of the sale does not matter. Selling at 4:05 PM or at 9:25 AM the next morning costs the same: the fee covers the stretch, not the minutes used. The same holds across a weekend: as modeled, a sale on Sunday evening pays the weekend fee. Counting rule: whole-stretch todo
- Early closes do not add a night. A night that starts at 1:00 PM is still one night.
- Daylight-saving switches do not matter. A weekend that is an hour shorter or longer is still three nights.
- Unscheduled closures add nights. If the market unexpectedly stays shut, the stretch is longer and the fee follows.
What the fee is charged on#
fee = settled value × nights × fee per night
The base is the settled value: quantity multiplied by the settlement price at the open. It is not charged on the advance, and not on the closing value.
Fee base in the config: settled-value todo
When it is paid#
The fee is deducted from the balance at the open. The advance you receive at night is never reduced by it.
If a gap is larger than the haircut, there may be little or nothing left above the advance. The fee is then collected only from what is left, down to zero. The seller is never asked to pay a fee out of pocket.
Where each fee dollar goes#
| Recipient | Share of each fee | What it does |
|---|---|---|
| USDC depositors | 70% todo | Paid into the pool: the share price goes up. |
| Reserve | 20% todo | Builds the buffer that covers gaps larger than the haircut. |
| $EVE stakers | 5% todo | Distributed to staked $EVE. |
| $EVE buybacks | 5% todo | Buys $EVE on the open market. |
Every line of this split is a placeholder until it is decided. In the simulator the placeholders are used as written, and the rounding remainder goes to the reserve.
A fee in numbers#
| Step | How | Amount |
|---|---|---|
| Reference value at the close | 10 × $240.00 | $2,400.00 |
| Advance paid at night (90%) | $2,400.00 × 90% | $2,160.00 |
| Oracle average after the open | fresh Chainlink price, averaged | $238.10 |
| Realized TWAP | what the pool got selling | $238.40 |
| Settlement price | the lower of the two (oracle), -0.79% vs the close | $238.10 |
| Settled value | 10 × $238.10 | $2,381.00 |
| Fee (3 nights) | $2,381.00 × 0.75% | −$17.86 |
| Advance already paid | −$2,160.00 | |
| Balance paid at the open | settled value − fee − advance | $203.14 |
| Total received by the seller | advance + balance | $2,363.14 |
| Pool surplus | realized $2,384.00 − settled value | $3.00 |
Three nights, so three nightly fees on the settled value.
Other costs#
- Network fees. Transactions on Base cost gas, paid by whoever sends them. EVE does not set or receive it.
- The settlement rule. The settlement price is the lower of the oracle average and the realized price. When the two differ, the seller receives the lower one. That is a cost of the design, not a fee, and it is explained in Settlement formula.