Overview of Sumero Protocol Fees

Trading Fees

Trading fees are generated whenever a user trades assets using SumSwap. A 0.3% trading fee is applied across all liquidity pools that provide the liquidity to carry out a trade. This fee is used to compensate liquidity providers for depositing their assets on the platform.

Liquidation Fees

The liquidation penalty (or reward rate for liquidators) is paid out to liquidators by the EMP contract as an incentive to begin the process of liquidating open synth positions that meet the liquidation threshold. This liquidation fee/reward rate is provided by the Sumero protocol. An additional reward is sent to UMA's Optimistic Oracle when the expire() function is called at expiry of an EMP. The user calling the expire() function must provide this reward/fee. This user will almost always be a member of the Sumero protocol team as they will need to provide this reward/fee.

Gas Fees

Gas fees (transaction fees) are not set by the protocol. They are determined by the Ethereum blockchain and change based on network participant behaviour/network congestion.

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