Keeper Fee

As mentioned earlier, Chromatic Protocol utilizes Mate^2 keeper developed and operated by the Chromatic Protocol itself to overcome the absence of event-driven programming in blockchains. The keeper continuously monitors the index and the predefined TP/SL values set by the takers. The keeper does not charge any additional fees during normal operation. However, costs are incurred when a position is liquidated.

Liquidation in Chromatic Protocol involves the keeper to close position. If takers didn’t manually close their position and it is automatically closed by predefined TP/SL, it means the keeper executed the position closure as it detected that the position met the predefined TP/SL condition. In this case, gas fees and additional keeper fees occur. Thus, Chromatic Protocol charges these fees as a ‘keeper fee’, from the party benefits from the liquidation(takers in case of take-profit, makers in case of stop-loss) and the received fee is directly paid to the keeper.

And, when supplying or withdrawing liquidity to/from the pools, a keeper fee is charged for the purpose of triggering the rebalancing operation in the Liquidity Bins in the Oracle round following my provide or withdraw command.