Fees

Boros has 2 fee sources:

1. Swap Fees

Boros collects a flat fee on top of the implied APR for every swap. Swap fee will be deducted from the position’s collateral.

For example, in a market with a swap fee tier of 0.05%, the fee for opening a position equals 0.05% × YU amount × Years to Maturity. In other words, traders will pay 0.05% fee on the $ value of their position.

In this scenario, traders will profit if implied APR changes by more than 0.1% in their favor (assuming no yield settlement happens throughout the period), as traders will have to open and close the position, incurring 2x the swap fee.

2. Open Interest Fees

Boros collects a flat fee on the fixed APR side of every YU during settlement.

For example, pools with a 0.1% fee tier and positions with a 5% fixed rate:

• Long YU positions effectively pay 5.1% in fixed APR.

• Short YU positions effectively receive 4.9% in fixed APR.

3. Operation Fees

Boros charges a small fixed fee on your first transaction and then intermittently (approximately every ~50 transactions) thereafter. This fee, usually around $1 during normal gas conditions, is used to cover the gas costs of executing trades from your address.