Higher margin fees if position closed too quickly and/or min profit time + price volatility

[ericjuta]

Defend the house but not deter traders too harshly

Thoughts on parameters for each

[leaf22]

I like the idea of increasing fees if positions are getting closed too quickly, but am having trouble determining which timeframes should fall under that.

One way to do this could be a minimum amount a position needs to accrue in funding fees.
An amount somewhere around 0.18% creates incentive to keep positions open while hopefully not acting as a deterrent. Assuming full collateral utilization, there would be no additional fees as long as a position remains open >24hrs (max. funding rate x3).

An equally important measure to defend the house is scaling fees based on position size.
While somewhat counterintuitive, large positions significantly increase risk profile for the protocol. On top of that, they are also the ones benefitting the most from being able to open/close positions without having to worry about market depth or price impact.

[ericjuta]

so currently there is a 0.1% margin open and close fee as well as funding rate
could increase that 0.1% margin close fee based on time open

[ghost]

I really like this idea. Perhaps a progressive timer? Starts at at like 60bps and decreases by 10bps every ten min after open for the first hour until it hits the 0.1% fee? 60bps is maybe a bit steep.