Fees

Adrena charges fees in four categories:

Fee Type	When Charged	Basis
Close position	At trade exit	Flat % of position size at open
Borrow fee	Ongoing while position is open	Utilization-based (accrues per second)
Virtual Funding Rate (VFR)	Ongoing while position is open	Hourly, OI-imbalance based
Swap / liquidity fee	Adding or removing ALP / RWALP liquidity	% of swap value

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Close Fees

Close fees are a flat percentage of the position size (not collateral). Rates are set per asset on-chain and adjustable by governance.

Main Pool

Asset	Close Fee (BPS)	Close Fee (%)
SOL	10	0.10%
BTC	10	0.10%
BONK	18	0.18%

Commodities Pool

Asset	Close Fee (BPS)	Close Fee (%)
XAU	10	0.10%
XAG	10	0.10%
WTI	10	0.10%

Borrow Fee (Two-Slope Model)

The borrow fee compensates liquidity providers for the pool assets locked against your position. It accrues continuously while the position is open and is settled at close.

Adrena uses a two-slope borrow rate model with a utilization kink:

• Below optimal utilization: Rate increases gradually from 0 to a midpoint rate - capital is available, so borrowing is cheap
• Above optimal utilization: Rate increases steeply from the midpoint to the maximum - scarcity of pool assets is reflected in cost

This makes borrowing cost efficient during normal conditions while strongly incentivizing position reduction when the pool is heavily utilized.

The optimal utilization level and rate bounds are configured per custody and adjustable by governance.

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Virtual Funding Rate

In addition to the borrow fee, positions accrue a Virtual Funding Rate (VFR) based on open interest imbalance between longs and shorts. The heavier side pays the lighter side hourly. This can partially offset the borrow fee for positions on the minority side.

See Virtual Funding Rate for details.

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Swap / Liquidity Fees

Fees apply when adding or removing liquidity through ALP / RWALP minting and redemption. Rates vary based on whether the swap moves the pool's asset ratios toward or away from their targets.

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Fee Distribution

All protocol fees are split across five buckets. Each bucket has its own BPS share; the split sums to 10,000 BPS (100%) per pool and is configurable per pool by governance.

ALP

Bucket	Recipient	Default BPS
LP fee	ALP holders (proportional to pool share)	7,500 (75%)
Manager fee	Pool manager / creator (paid to a stable-mint token account)	1,500 (15%)
Protocol fee	Protocol treasury	5000 (5%)
LM fee	Liquidity mining participants (ADX stakers)	500 (5%)
Referrer fee	Active referrers	100 (see Referral System)

RW-ALP

Bucket	Recipient	Default BPS
LP fee	RW-ALP holders (proportional to pool share)	5,000 (50%)
Manager fee	Pool manager / creator (paid to a stable-mint token account)	4,000 (40%)
Protocol fee	Protocol treasury	5000 (5%)
LM fee	Liquidity mining participants (ADX stakers)	500 (5%)
Referrer fee	Active referrers	100 (see Referral System)

Each bucket accrues independently on the pool state (lp_fee_debt_usd, manager_fee_debt_usd, protocol_fee_debt_usd, lm_fee_debt_usd, referrers_fee_debt_usd) and is distributed by the on-chain distribute_fees instruction. This five-bucket model replaced the single unified fee bucket used prior to Release 39.