Morpher's Zero Fees Explained
Exchange traded assets come with limited liquidity. Traders incur steep transaction costs from slippage and market impact and brokers charge commissions and overnight fees.
Morpher is the only platform that does not charge any fees whatsoever. There is no slippage either, since trading on Morpher doesn’t require an orderbook, but all trades settle at their quoted price.
Spreads on Morpher mimic bid/ask prices which are seen on every other exchange as well. While technically spreads are not required on Morpher, they serve to limit arbitrage opportunities between Virtual Futures on Morpher and their underlying spot markets. Spreads are also an important factor of Morpher’s token economy, since they ensure that a small amount of MPH token gets burned with every transaction.
On Morpher users can apply up to 10x leverage on positions. Leverage can be used to increase your exposure to a market beyond the size of your balance. Similar to traditional markets, there is an added cost to borrowing money. A non-compounding fee of 0.03% net exposure applies every 24 hours on leveraged positions. Morpher does not benefit from this fee, the tokens used to pay for margin interest are burnt.
Please keep in mind that increased leverage results in higher spreads along with a higher margin interest.
When users withdraw their funds on Morpher, there is a 100 MPH fee. This fee is associated with Polygon network activity to pay for transaction fees (gas fees). Morpher does not profit from them.
As a reward for operating the protocol, Morpher receives 0.015% of the total token supply in newly minted token every day. That compounds to about 5.6% newly minted token per year and is comparable with the inflation rate of Ethereum between May 2019 and May 2020 (~4.6% per annum).
Morpher is the only platform that does not charge any fees whatsoever. There is no slippage either, since trading on Morpher doesn’t require an orderbook, but all trades settle at their quoted price.
Spreads:
Spreads on Morpher mimic bid/ask prices which are seen on every other exchange as well. While technically spreads are not required on Morpher, they serve to limit arbitrage opportunities between Virtual Futures on Morpher and their underlying spot markets. Spreads are also an important factor of Morpher’s token economy, since they ensure that a small amount of MPH token gets burned with every transaction.
Margin Interest:
On Morpher users can apply up to 10x leverage on positions. Leverage can be used to increase your exposure to a market beyond the size of your balance. Similar to traditional markets, there is an added cost to borrowing money. A non-compounding fee of 0.03% net exposure applies every 24 hours on leveraged positions. Morpher does not benefit from this fee, the tokens used to pay for margin interest are burnt.
Please keep in mind that increased leverage results in higher spreads along with a higher margin interest.
Withdrawal (Network) Fees :
When users withdraw their funds on Morpher, there is a 100 MPH fee. This fee is associated with Polygon network activity to pay for transaction fees (gas fees). Morpher does not profit from them.
Operating rewards:
As a reward for operating the protocol, Morpher receives 0.015% of the total token supply in newly minted token every day. That compounds to about 5.6% newly minted token per year and is comparable with the inflation rate of Ethereum between May 2019 and May 2020 (~4.6% per annum).
Updated on: 14/03/2023
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