Fees & Interest

Every trade on Lavarage has costs. Understanding exactly what you pay helps you calculate break-even points, compare across platforms, and make better sizing decisions.

Fee Summary

Fee	When	Amount	Paid To
Open fee	Position opens	1% of total position size	Protocol
Close fee	Position closes	1% of position value at close	Protocol
Interest	Continuously while open	APR on borrowed amount (varies by pool)	Lender
Swap fees	Open and close	Built into Jupiter routing	DEX LPs

Opening Fee

1% of your total position size (margin x leverage).

Example: $100 margin at 5x = $500 position. Opening fee = $5. This is deducted on-chain during position creation.

Closing Fee

1% of your position's value at the time of closing.

If your $500 position grew to $600, the closing fee is $6. If it shrank to $400, the closing fee is $4. The fee scales with your outcome.

Interest

Interest is the ongoing cost of borrowing capital from the lending pool. It's the most important cost to understand because it compounds over time.

How It Works

Rate: Set per pool by the lender. Displayed as APR (annual percentage rate).
Calculation: Simple interest, accruing daily.
Formula: Daily interest = Borrowed Amount x APR / 365

Worked Example


Margin	$100
Leverage	5x
Borrowed	$400
Pool APR	30%
Daily interest	$400 x 0.30 / 365 = $0.33/day
Weekly cost	~$2.30
Monthly cost	~$10.00

At 30% APR and 5x leverage, interest eats 10% of your margin per month. For a trade to be profitable after 30 days, the token needs to move enough to cover ~$10 in interest plus ~$10 in open/close fees.

Why It Matters for Risk

Interest increases your effective debt over time. This gradually raises your LTV (Loan-to-Value), which pulls your liquidation price closer to the current market price. Even in a flat market, a highly leveraged position can drift toward liquidation purely from interest.

How to Minimize Interest Costs

Shorter holds — Interest is time-based. A 2-hour scalp pays almost nothing.
Lower leverage — Less borrowed capital means less interest.
Compare pools — Different pools charge different rates. Sort by interest rate in the token search to find cheaper options.

Swap Fees

Every open and close involves a token swap via Jupiter. Jupiter routes your swap across Solana DEXs for the best price. The swap fee is built into the execution price, not charged separately.

Typical swap fees are small (0.01-0.3%), but for low-liquidity tokens or large trades, price impact can add meaningful cost. The pre-trade preview shows the estimated price impact before you confirm.

Break-Even Calculator

To profit on a leveraged trade, the token price needs to move enough to cover all costs:

Break-even move = (Open fee + Close fee + Interest) / Position size

Quick reference for a 1-day hold:

Leverage	Fees (open + close)	Interest (30% APR, 1 day)	Total cost as % of margin	Token move needed to break even
2x	4% of margin	~0.08%	~4.1%	~2.1%
3x	6% of margin	~0.16%	~6.2%	~2.1%
5x	10% of margin	~0.33%	~10.3%	~2.1%

The fees scale with leverage (bigger position = higher absolute fees), but the required token price move to break even stays roughly the same because your position size scales too.

For multi-day holds, interest becomes the dominant cost. A 5x position held for 7 days at 30% APR adds ~2.3% of margin in interest alone.

Token Discount

Holding the Lavarage governance token reduces your closing fee. The discount is applied automatically based on the token balance in your connected wallet at the time of closing.

Details on discount tiers will be published with the token launch.

Next: Understand risk and liquidation to protect your positions.