Swap and Mint Fees
Swap functions have a base fee of 0.3%; however, swapping eTY, eITY, eBTC, eETH, sEconomies, usRP, and MGMS have a 2.5% swap fee, prioritizing minting, thus providing continual buy and use pressure for ISA. These swap and mint fees are deposited in the Treasury, which will be used to buy back ISA at a variable floor price - thus collateralizing ISA itself. These fees also allow for external investment structures to be built, generating continual yields for the platform as a whole. Options themselves will have their own structure as dictated by the drift and margin formula behind a specific leg pair.
ISA itself has a trailing volatility measure in place that will help stabilize the ecosystem long term. When the price of ISA falls more than 10%, a panic control penalty will activate. This is to ensure continual analysis of all buy and sell orders to ensure a congruent investment thesis over time, rather than acting on impulse - thus helping protect investors over the long term. This penalty is calculated by implementing a 1/4 the downward percentage move on a 1-hour trailing value as a fee. For example, if the price of ISA were to fall 20% in a single hour, the new swap fee would be (0.25 x 20% + 0.3%) = 5.3%. However, once volatility normalizes again on the hour, the protection fee will revert to 0, and you will be left with the standard 0.3% fee.
Last modified 11mo ago