Fee

Buffer Perps are built on Perennial finance. An exchange fee is charged by perennial which varies based on how much impact the trade has on the market.

Taker Fee:

This taker fee is charged whenever, a long or short position is opened or closed on Buffer. This fee is determined based on the position's notional size, change in skew (long/short ratio) and the impact the position has on the makers.

$$taker fee = notional * (takerFee + Δskew * takerSkewFee + impact * takerImpactFee)$$

Settlement Fee:

For Buffer perps, settlement fee is the fee used to cover oracle keeper fee.

Ecosystem Fee:

Buffer charges a very small ecosystem or interface fee of 1 bps for helping users interact with perennial's smart contracts.

Fee Distribution:

Both settlement fee and taker fee are distributed to the markets on Perennial Finance.

The ecosystem fee is collected by Buffer and distributed to Buffer LPs, stakers, referral (affiliates), treasury and competitions.