Maintaining proper liquidity is vital for the system. Therefore, some mechanisms will be performed to encourage liquidity providers to stay in the pool until expiration. Whenever someone withdraws liquidity beforehand, an extra withdrawal fee will be charged as the protocol's income.
The withdrawal fee charged is also linearly dynamic from 0.3% to 3% by time, the same as the trading fee.
There will be no withdrawal fee after the expiration date. Liquidity providers may redeem DAI back with all of their Long & Short tokens.
*Dynamic withdrawal fee will not be implemented in the alpha version of iGain. The withdrawal fee will be fixed at 0.3% for the time being.