Dynamic Trading Fee

The other key feature is to solve the liquidity issue by improving the motivation to serve as the liquidity provider of Long and Short tokens. As long as iGain is a quarterly option, its price may fluctuate and will decay over time. Therefore, to prevent potential arbitrage, the transaction fee will be linearly incremental before the period ends. This feature is called “Dynamic Fee.” While getting closer to an expiry date, the transaction fee will be increased up to 3%. This would change the order book of the secondary market and hold back the arbitrage behavior right before the end of the period.

*Dynamic trading fee will not be implemented in the alpha version of iGain. the trading fee will be fixed at 0.3% for the time being.