Liquidity Utilization

When liquidity is utilized from liquidity bins, the utilization is executed starting with the available liquidity in the bin closest to the index price.

For example, a taker orders to open a new position with a maker margin of 50 USDC (Contract Qty: 500 USDC, take-profit 10%, stop-loss 20%). The maker margin is allocated sequentially from the bin closest to the index price to each bin's available liquidity as follows: 20 USDC in the +0.01% bin, 20 USDC in the +0.02% bin, and 10 USDC in the +0.03% bin.

• +0.01% Bin : 20 USDC * +0.01%(1bps) = 0.002 USDC Fee

• +0.02% Bin : 20 USDC * +0.02%(2bps) = 0.004 USDC Fee

• +0.03% Bin : 10 USDC * +0.03%(3bps) = 0.003 USDC Fee

The trading fee for the utilization is calculated by applying the respective fee rates to the liquidity provided to the three bins: 0.002 + 0.004 + 0.003, totaling 0.009 USDC. Therefore, the taker's total amount spent to open this position is 100.009 USDC. If the index price at this point was 1,000 USD, the taker has purchased liquidity at a price 0.018% (1.8 bps) higher than the index price, which is 1,000.18 USD.