> For the complete documentation index, see [llms.txt](https://flipper-3.gitbook.io/flipper-docs/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://flipper-3.gitbook.io/flipper-docs/flipper-v2/trading-mechanics/fees-funding-and-liquidation.md).

# Fees, Funding and Liquidation

Understand Flipper V2 trading fees, funding payments, and liquidation risk.

Leveraged perpetual trading can involve trading fees, funding payments, network costs, and liquidation risk.

## <mark style="color:$primary;">Trading Fees</mark>

Trading fees are calculated using the executed notional value of an order, not only the margin committed to the position.

**Trading fee = Executed notional × Fee rate**

Opening, increasing, reducing, and closing a position may each generate a fee when the corresponding order executes.

A **maker order** adds resting liquidity to the orderbook. A **taker order** executes against liquidity already available in the orderbook.

A limit order is not always a maker order. If it executes immediately against existing liquidity, it may be charged as a taker order.

The standard Flipper V2 rates confirmed when this documentation was prepared were:

| <mark style="color:$primary;">**Execution type**</mark> | <mark style="color:$primary;">**Fee rate**</mark> |
| ------------------------------------------------------- | ------------------------------------------------: |
| **Taker**                                               |                                             0.05% |
| **Maker**                                               |                                            0.015% |

{% hint style="warning" %}
Fee rates may differ by account, market, or future fee-tier updates. Check the rate displayed in the order interface or under **Portfolio → Fee tier** before placing a trade.
{% endhint %}

### <mark style="color:$primary;">Fee Examples</mark>

| <mark style="color:$primary;">**Execution**</mark> | <mark style="color:$primary;">**Executed notional**</mark> | <mark style="color:$primary;">**Rate**</mark> | <mark style="color:$primary;">**Trading fee**</mark> |
| -------------------------------------------------- | ---------------------------------------------------------: | --------------------------------------------: | ---------------------------------------------------: |
| Taker fill                                         |                                                 1,000 USDC |                                         0.05% |                                            0.50 USDC |
| Maker fill                                         |                                                 1,000 USDC |                                        0.015% |                                            0.15 USDC |
| Taker opening and taker closing                    |                                            1,000 USDC each |                                    0.05% each |                                      1.00 USDC total |

The round-trip example assumes the same executed notional when opening and closing and does not include funding, spread, slippage, or other costs.

If the exit price or position quantity changes, the closing notional and fee will also change.

Do not multiply the fee by leverage again if the calculation already uses the full position notional.

Slippage and the bid-ask spread can affect the final execution cost, but they are not the same as the trading-fee percentage.

## <mark style="color:$primary;">Other Costs</mark>

Deposits and withdrawals may involve network, processing, or cross-chain costs.

Collateral conversion may also involve separate charges where supported.

Review the details shown before confirming each action. The absence of a separate wallet transaction for every order does not mean that all account actions are free.

## <mark style="color:$primary;">Funding</mark>

Funding is a periodic payment between long and short positions that helps keep perpetual futures prices aligned with the reference market.

In general:

* a positive funding rate means long positions pay short positions;
* a negative funding rate means short positions pay long positions.

**Funding payment = Position notional × Funding rate**

The actual payment also depends on the position direction and whether the position is open at the funding settlement time.

For example, a funding rate of 0.01% applied to 1,000 USDC of position notional results in a 0.10 USDC funding payment for that event.

Check the estimated funding rate, settlement countdown, and interval shown for the selected market.

Funding rates can change and should not be treated as fixed borrowing costs. Funding is separate from trading fees and can continue to affect a position while it remains open, even if the Flipper interface is closed.

## <mark style="color:$primary;">Liquidation</mark>

Liquidation may occur when the applicable account margin falls below the required maintenance level.

Risk calculations use the mark price. The last traded price or the price displayed on a chart may therefore differ from the price used for liquidation calculations.

With cross margin, the overall account balance and exposure can affect every position using the shared collateral.

If isolated margin is available and selected, the position is assessed using the collateral allocated to that position.

During liquidation, the trading system may cancel open orders and reduce or close positions. Additional liquidation charges may apply.

The liquidation price displayed in the interface is an estimate. It may change because of:

* collateral changes;
* other open positions;
* funding payments;
* realized profit or loss;
* account activity;
* changes in maintenance requirements.

{% hint style="danger" %}
Maintain a margin buffer and monitor your exposure. Depositing additional collateral or placing a stop-loss order does not guarantee that liquidation will be avoided, particularly during rapid market movements, low liquidity, or processing delays.
{% endhint %}

## <mark style="color:$primary;">Extreme Market Conditions</mark>

If ordinary liquidation mechanisms are insufficient, the trading system may use an insurance fund and auto-deleveraging mechanisms.

Auto-deleveraging can reduce profitable positions to help restore system balance during extreme conditions.

These mechanisms are not insurance against individual trading losses.