Minting and Burning FLP/sFLP

These are the following fees associated with Liquidity Providing through minting and burning FLP tokens.

• Minting FLP Fee: A dynamic fee that depends on the balance of assets in FLP after the liquidity is added.

It is calculated by the formula below.

$$MintFee_{total} = LP_{addVariable}+LP_{addBase}$$

If a token is at its Ratio Max then FLP will not be mintable using that token. If you are receiving this error, try to mint using another token present in FLP. E.g If Sol is at its ratio max, then try to mint FLP using ETH, BTC, or USDC.

• Burning FLP Fee: A dynamic fee that depends on the balance of assets in FLP after the liquidity is removed. An additional 5bps penalty fee is also added to discourage frequent withdrawals.

It is calculated by the formula below.

$$BurnFee_{total}=LP_{removeVariable}+LP_{removeBase}+LP_{penaltyFee}$$

There is cap on Utilization through trading of any pool at 90% so withdrawing/burning FLP is possible under most conditions. If utilization reaches 100% from withdrawals and max utilization by traders then burning FLP in order to receive the desired token will not be possible until utilization drops below 100% from traders closing longs or other users minting FLP with the desired token. It is suggested in this case to try to select another token to receive when burning FLP.

If a token is at its Ratio Min then FLP will not be burnable using that token. If you are receiving this error, try to burn using another token as the receiving asset present in FLP. E.g If Sol is at its Ratio Min, then try to burn FLP using ETH, BTC, or USDC as the receiving asset.

Details on Burn Fee

The components of the BurnFees are defined as below. LP Remove Penalty is 0.0005 and FeeMin is 0.

$$LP_{addVariable}=M(Ratio)+b \\ M = \frac{Fee_{target}-Fee_{min}}{Ratio_{target}-Ratio_{min}} \\ b=Fee_{min}-M(Ratio_{min})$$

$$LP_{removeVariable}=M(Ratio)+b \\ M = \frac{Fee_{target}-Fee_{max}}{Ratio_{target}-Ratio_{min}} \\ b=Fee_{max}-M(Ratio_{min})$$

Token	Fee Target	Fee Max	Base Fee
Pool 1 Tokens	0.0010	0.0025	.0005
Pool 3/4/5 Tokens	.0015	.00375	.00075
USDC (Pool 1)	.0010	.00025	.0005

FLP.1 TOKEN BALANCES

TOKEN	Target ratio	Min ratio	Max ratio
BTC	22.5%	10%	30%
ETH	5%	6%	20%
SOL	27.5%	20%	40%
USDC	45%	35%	55%

FLP.3 TOKEN BALANCES

TOKEN	Target ratio	Min ratio	Max ratio
JUP	20%	10%	40%
JTO	15%	10%	20%
RAY	5%	2%	12%
KMNO	15%	5%	20%
PYTH	2%	1%	10%
W	3%	1%	10%
USDC	40%	30%	50%

FLP.4/5 TOKEN BALANCES

TOKEN	Target ratio	Min ratio	Max ratio
BTC	70%	1%	100%
USDC	30%	1%	100%