Fees

In the Aroon network, those who participate by placing orders on the order book, contributing liquidity, and maintaining the network infrastructure are rewarded with the fees generated from completed trades and asset transfers. Unlike some protocols, Aroon does not impose gas fees for interactions within the network.

Traders on Aroon can reduce their trading costs or enhance their earnings through discounts or rewards linked to their trading activities. These rewards, which can be in any asset, are open to funding by any participant.

Trading Fees

Aroon’s fee structure is designed to incentivize key players in the decentralized ecosystem without charging gas fees.

Trading fees apply to every transaction in continuous markets, paid by the price taker - the party who executes a trade using a market order or whose limit order is filled immediately. The price maker, whose order was already on the book, receives a portion of these trading fees, rewarding their role in providing liquidity.

The fee for each order is constant, regardless of the number of trades required to fill it. During a market's opening auction phase, no fees are collected.

Fee Distribution and Structure

Fees are calculated upon trade execution and are deducted from the trader's general account in the market's settlement currency.

The fee is shared among the trade's maker, infrastructure providers (validators), and liquidity providers.

• Maker Fee: Paid by the taker to the maker at trade settlement.

• Infrastructure Fee: Allocated to validators for network maintenance, distributed at the end of each epoch based on their token representation. A portion of this fee is also shared with validators’ nominators.

• Liquidity Fee: Paid by traders taking liquidity from the order book, distributed to liquidity providers.

Fee Calculations

The trading fee is derived as follows:

Total Fee = (infrastructure fee factor + maker fee factor + liquidity fee factor) x trade value Trade Value = size of trade x price of trade

Example: For a trade of 100 units at USDC50, with each fee factor at 0.001, the total fee is calculated on a trade value of USDC5000, resulting in USDC15. This fee remains consistent regardless of the number of transactions needed for order fulfillment.

Transfer Fees

Asset transfers within Aroon, whether between Aroon keys or to a rewards pool, incur a transfer fee. This fee is charged in addition to the transfer amount, in the same asset, and is used to compensate validators for facilitating the transfer within the network infrastructure.