Fee Structure

Key Finance's fee model includes three primary sources: 1) Wrapping Fees, 2) Staking Fees, 3) Buyback Fees.

At the beginning of the operation, in order to increase the size of the liquidity pool, all wrapping fees collected by Key Finance are distributed as rewards for Liquidity Providers.

Wrapping Fees

• Wrapping fees are charged at a rate of 2.5% for esGMXkey and MPKey, and 0.5% for GMXkey when a user users Key Finance's "Wrap" feature.

• This fee is designed to capture value from the transactional activity of users on Key Finance.

  • For example, if a user has 10 GMX, 40 esGMX, and 50 MP in the account, and they use the wrapping, Key Finance collects fees equivalent to 0.05 GMXkey, 1 esGMXkey, and 1.25 MPkey.

Staking Fees

• Staking fees are charged at a rate of 5% for each asset when a user stakes LP NFTs (ERC721) and Key-wrapped tokens (ERC20) in Key Finance.

• This fee is intended to capture value from the earnings from staking each asset.

  • For instance, if a user earns 20% interest through GMX staking using the assets they deposited in Key Finance, the user receives 19% (20%*95%) as their staking rewards while Key Finance collects 1% (20%*5%) of the 20% profit as a staking fee.

Buyback Fees

• As Key Finance releases a 'Buyback' function, fees are charged at a rate of 2.5% for each transaction of a buyback.

• The fee is supposed to charge to the users who wish to have back to GMX.

Overall, Key Finance's fee structure is designed to ensure that Key Finance is sustainable and capable of continuing to provide liquidity solutions to GMX stakers.