FEES

//01_ EVERY FEE

Gas is paid to the chain in ETH and is not a Paperhands fee. The impact haircut on gains is not a fee either: nothing is paid to anyone, the house simply pays less (see the impact curve).

//02_ EXAMPLES

//WIN_

$8.814691 adjusted gain: fee $0.176293

//LOSS_

$10.00 loss: fee $0.20

//LIQUIDATION_

$100.00 margin: fee $2.00

These are the figures of the worked BTC example in wins and losses, with an empty queue.

//03_ WHILE THE QUEUE IS OPEN

When winners are waiting in the queue line, no fee is collected:

• a losing close or a liquidation pays no fee, and the whole loss goes to the queue line;
• a win is queued at its net amount (the gain minus 2%), and that 2% is not distributed to anyone: it stays in the house.

The same applies to a win that the house can only pay in part: the net amount is paid or queued, and no fee is distributed.

//04_ WHERE FEES GO

Every fee actually charged is split 50/50: half to paper holders through the rewards accumulator, half to an amount owed to the treasury, treasuryOwed. The paper share rounds down and the treasury takes the remainder. The split is a constant of the contract.

withdrawTreasury() is permissionless: anyone can call it, and it always sends the full treasuryOwed to the treasury address, never anywhere else. The keeper calls it once the amount owed is above $50.

//TREASURY_

0xe568F9e89F77D88399817Ec4046fa21Fc675E269