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  • What is ethere.al
  • What is ISA
  • Mintable Assets
    • Direction - Bullish
      • DeFi Growth Market | DGM
      • eITY | Inverse 3x, 5x, 10x Leveraged US Ten Year Yield Hedge
      • Financial Innovation Market | FIM
      • Indirect Crypto Exposure | ICE
      • Synthetic Economies
      • Traditional Finance to Decentralized Finance Interpolation | TDI
      • Transversal Unemployment Market | TUM
    • Direction - Bearish
      • Consumer Price Index DeFi Hedged | CPIDH
      • Consumer Price Index TradFi Hedged | CPITH
      • DeFi Capital Inflow | DCI
      • DeFi Capital Outflow | DCO
      • Distributive Debt Cycle | DDC
      • eTY | 3x, 5x, 10x Leveraged US Ten Year Yield Hedge
      • eBTC - eETH | Inverse Large Cap Assets
      • Synthetic Recession Probability - usRP
      • Traditional Capital Inflow | TCI
      • Traditional Capital Outflow | TCO
    • Direction - Neutral
      • Delta DeFi Sentiments | DDS
      • DeFi Gamma Expansion | DGE
      • Delta Global Energy Sentiments | DGES
      • Delta Global Technology Sentiments | DGTS
      • Delta Neutral Indirect to Direct Crypto Exposure | DNIDCE
      • DeFi Volatility Index | DVIX
      • Global Energy Sentiment | GES
      • Global Technology Sentiment | GTS
      • Machine Generated Market Sentiment | MGMS
      • Rapid Extrinsic Value Decay AVAX | REVDA
      • Rapid Extrinsic Value Decay BTC | REVDB
      • Rapid Extrinsic Value Decay ETH | REVDE
      • Volumetric DeFi Exposure | VDE
    • Example Portfolios
    • Non-Traditional Hedges
    • Pricing Model
  • Mintable Dynamic Products | Options
    • Rho - Dynamic Fixed Yield Product
    • DTV Sync Options
  • Economics
    • Swap and Mint Fees
  • Roadmap
    • Team
    • Product Vision
    • Additional Asset Mints
    • Tokenized Algorithms
    • Deep Option Liquidity
    • Lending Partnership
    • Governance
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  1. Economics

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.

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Last updated 3 years ago

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