# Fees

The fees payable by users to the protocol will be proportional to the notional of filled orders. Fees will be settled in stablecoin posted together with collateral at time of pre-auction order submission.

Fees are determined at the risk sharing building block level. 

The notional referenced for fee calculations is based on the median strike offered by the protocol at relevant expiry, which is designed to be the closest to prevalent spot.

## Basic Fee Structure

Forward fee: 0.01% of notional

Option fee: 0.04% of notional

Digital Option fee: 1% of notional

## Conditional Order Multi-Leg Discount

Further, all conditional orders benefit for fee discounting based on the number of legs included. 

This discount parameter is biased towards encouraging experimentation with the multi-legged conditional order Ithaca framework.

Discount parameter 1 (d1): 80% 

Discount parameter 2 (d2): 5% 

Discount formula: additive fees x  \[ d1 - ( { # legs ( ex forwards ) - 2 } x d2 ]

## Fee Caps

Fees are capped at 12.5% of option premia and 25% of digital option premia.<br>


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