# Fees

Source: https://docs.testnet.mog.xyz/trading/fees/

Markdown: https://docs.testnet.mog.xyz/trading/fees.md

Reviewed protocol version: 11.0.0

Protocol review date: 2026-10-30

Scope: reviewed public documentation. Numerical examples use illustrative or launch settings; they are not live quotes or a guarantee of current deployed parameters. Consult the app for current market and position values.

Mog has two fees at launch. Opening a position costs an **open fee of 0.025% of position size, capped at 1% of margin**. A winning close pays **2.5% of settled profit**. There are no funding fees. Adding margin pays only the rest of the open fee, if any, that the larger margin would have paid at opening.

## The open fee

Every order pays the open fee when you place it. The fee is 0.025% of the order's position size, and it is never more than 1% of the order's margin. The cap applies from 40× leverage up. For example, a 10 USDG order at 10× pays 0.025 USDG, and a 10 USDG order at 100× pays the smaller of 0.025% of 1,000 USDG and 1% of 10 USDG: 0.10 USDG.

The fee is not collateral. Your available balance must cover the margin plus the fee, and a scale order pays one fee per entry.

When you [add margin](https://docs.testnet.mog.xyz/trading/adding-margin/), Mog prices the open fee again on the new margin and charges only the difference to what the position already paid. Below the cap this is zero. For example, a 10 USDG order at 1,000× pays 0.10 USDG, the cap. Adding 30 USDG of margin later pays 1% of 40 USDG less 0.10 USDG: 0.30 USDG. The same position opened with 40 USDG at 250× pays 0.40 USDG, so both routes pay the same fee.

Mog holds the fee with the order. You pay it only if the order fills. If you cancel the order or it is voided, the fee comes back with your collateral. An order that fails the market's entry checks or its [open-interest rules](https://docs.testnet.mog.xyz/trading/positions-and-leverage/#open-interest-rules) when you submit it is refused before the fee is charged.

Each market has its own rate and cap. Governance can change them through the timelock, up to 1% of position size and 10% of margin. A change applies to later orders and later margin additions. An order you already placed keeps the fee it paid. The app shows the fee before you sign. If the fee rises above the amount you signed for, the order is refused.

**View the open fee formula**

$$
\text{fee}=\min\left(\text{rate}\times N,\ \text{cap}\times M\right)
$$

$N$ is the order's position size and $M$ its margin. At launch, the rate is 0.025% and the cap is 1%. On-chain rounding can raise the fee by the smallest unit.

## The profit fee

On a winning close, Mog calculates profit using the [close curve](https://docs.testnet.mog.xyz/trading/pnl-and-closing/), then deducts the fee. A take-profit or stop-loss is a close and pays the same fee.

Your remaining cash margin returns to your balance. A losing close has no profit fee. Your fee rate is fixed when the position fills.

The fee is paid together with your payout. When the treasury covers your payout, the fee is paid at settlement too. When part of your payout waits in [the payout queue](https://docs.testnet.mog.xyz/account/payout-queue/), the matching part of the fee waits with it. The fee is never paid ahead of a trader payout.

## What the fees fund

At launch, 70% of each fee funds MOG buybacks and 30% funds protocol operations. The same split applies to the open fee and the profit fee. The open fee is paid out when the order fills. See [Buybacks and burns](https://docs.testnet.mog.xyz/mog/buybacks-and-burns/).

Both fees are part of your [trading edge](https://docs.testnet.mog.xyz/mog/earning-mog/#your-trading-edge), so the fees you pay earn MOG when the position settles.

Network transaction costs are separate.

Each position keeps the close curve it filled with.