Carmine Options AMM
  • Intro
  • What we are aiming for
  • Audit
  • Carmine Academy
  • How to use the app
  • Use cases
  • Organization
    • Team
  • Mechanics - Basic Overview
    • Liquidity Pools
    • Initialization of new pairs and new options
    • Price Adjustments
    • Examples
  • Tokenomics
    • Tokenomics
    • Token Allocation
    • Distribution of Fees
    • Voting about Treasury and community projects
  • Usage
    • For Hedging
    • For Speculation
    • For Trading
    • Arbitraging the AMM
    • Future Use Cases Unlocked by the Composability of DeFi
      • Hedging Impermanent Loss
  • Mechanics - Deeper Look
    • Option Pricing Mechanics
    • Fees
    • Volatility Updates
    • Slippage
  • Tech docs
    • Mainnet addresses
    • Smart Contract Architecture
    • Deprecated Smart Contract v1 Endpoints
    • Smart Contract v2 Endpoints
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  1. Mechanics - Deeper Look

Fees

f

Fees will be paid as a proportion to the option premia.

FeesPaid=FeesProportionāˆ—OptionPremiaFeesPaid=FeesProportion*OptionPremiaFeesPaid=FeesProportionāˆ—OptionPremia

The OptionPremia is without fees and after the volume impact.

The FeesProportion is a proportion the user pays for buying/selling option, on top of premia.

There are other alternatives for paying fees, like paying proportion of excercised value. But having fees as proportion to option's premia is the easiest to understand.

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Last updated 2 years ago