> ## Documentation Index
> Fetch the complete documentation index at: https://docs.kimia.live/llms.txt
> Use this file to discover all available pages before exploring further.

# Fees

> Taker, maker, liquidation, and how funding fits in.

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Kimia applies three explicit fees, plus funding (which is not a fee but
conceptually adjacent).

## Trading fees

| Fee       | Default        | Applies to                          | Sink                 |
| --------- | -------------- | ----------------------------------- | -------------------- |
| **Taker** | 10 bps (0.10%) | Anyone crossing the spread          | `market.fee_vault`   |
| **Maker** | 5 bps (0.05%)  | Resting liquidity filled by a taker | Reserved (see below) |

Computation:

$$
\text{notional} = \frac{\text{base\_amount} \times \text{price}}{\text{BASE\_PRECISION}}, \qquad \text{fee} = \frac{\text{notional} \times \text{fee\_bps}}{10{,}000}
$$

Fees are charged in **USDC** on the quote side and deducted from
`collateral` at fill time.

<Tip>
  The maker fee in V1 acts as a **rebate placeholder**. The 5 bps is still
  subtracted from the maker's fill, but the rebate distribution mechanism is
  gated behind V2 (pending final governance design). Makers currently pay
  effective 5 bps.
</Tip>

## Liquidation fee

Charged when a position is force-closed:

| Portion               | Share      |
| --------------------- | ---------- |
| **Liquidator reward** | 50% of fee |
| **Insurance fund**    | 50% of fee |

Default fee: **500 bps (5%)** of closed notional.

See [liquidation](/perpetuals/liquidation) for the full flow.

## Withdrawal / deposit fees

**None.** Depositing and withdrawing USDC is free. The only cost is the Solana
network transaction fee (\~0.00001 SOL).

## Funding is not a fee

Funding payments redistribute value between longs and shorts; they're not
pocketed by the protocol. If you hold through a funding cycle:

* **Long** when mark > oracle → you **pay**
* **Short** when mark > oracle → you **receive**
* ...and vice versa

There's also a small structural **carry offset** of ≈0.02% per hour (longs pay,
shorts receive) that represents cost-of-carry. This is symmetric and does not
flow to the protocol.

See [funding rate concept](/concepts/funding-rate) for the formula.

## Fee sinks

* `market.fee_vault`, collects all trading fees. Admin-sweepable via a separate
  governance-controlled path.
* `market.insurance_vault`, collects half of liquidation fees + forfeited
  order margins from liquidated users. This buffer absorbs bad debt before NAV
  is impacted.

## Example fee calculation

Long 1 SOL at \$130 taker:

```
notional  = 1 × 130 = 130 USDC
fee       = 130 × 10 / 10_000 = 0.13 USDC
```

The fee is immediately debited from your collateral upon fill.