fees & collateral parameters
summary of fees charged by the handle.fi protocol
when using any of the services which handle.fi offers it is important to be aware of all the possible, fees, spreads and liquidation parameters.
opening up a vault in order to be extended credit incurs fees initially and on a continual basis. it is also important to keep in mind what the min c-Ratio is in order to avoid liquidation. see the borrow section for more information.
as is common in the industry, fees on leveraged trading are calculated on the total value of the position size (leverage x collateral).
all positions which are placed on handle.fi will be liquidated if one of the liquidation triggers are reached. a position will go through the liquidation threshold if either the leverage of the position is above the max. leverage or below the min. collateral.
be aware that your collateral is calculated continuously and is equal to your initial collateral less your losses and fees.
initially all fees and system parameters will be set by handle.fi DAO governance. a move to algorithmically controlled fee and parameter mechanisms is planned to be implemented in future protocol upgrades.