Fees & Revenue Share

How funding is priced for each leveraged position.

Multiply uses a simple, predictable fee model that aligns incentives across terminals, liquidity providers, and Dripster. Fees are composed of:

• an entry fee (one-time, based on notional × leverage),

• a time-based fee (continuous),

• and a fixed revenue split (30% to terminals).

All fees are designed to cover hedging costs, compensate liquidity providers and terminals, and fund Dripster’s underwriting infrastructure.

A leveraged position faces two fees:

Entry Fee

A fixed percentage applied to Notional × Leverage at position creation:

EntryFee = OpeningNotional × Leverage × f_entry

where f_entry is 69 bps.

Example (YES @ 0.40, 5× leverage, $1,000 notional):

EntryFee = 1,000 × 5 × 0.0069 = $34.50

This ensures immediate cost coverage for hedge execution, especially in markets with moderately wide spreads.

Time-Based Fee

A funding-style fee applied continuously on Notional × Leverage.

TimeFee = OpeningNotional × Leverage × f_time × TimeElapsed

Where f_time annualizes to 15-20% APR, but charged continuously.

Example:

• Notional = $1,000

• Leverage = 5×

• f_time = 18% APR

• Holding period = 12 hours

TimeFee = 1,000 × 5 × (0.18 / 365) × (12/24)

TimeFee ≈ $1.23

Total Fee Formula

TotalFee = EntryFee + TimeFee

Revenue from EntryFee + TimeFee is used to:

• compensate terminals for distribution

• fund Dripster’s underwriting, risk engine, and operational infrastructure

• service fixed interest owed to hedge capital providers

Distribution Model

30% → Terminal

For distribution, UI/UX, retention, notifications, and portfolio management.

70% → Dripster

Used to:

• fund hedging operations and routing

• pay interest to capital providers

• support risk modeling, monitoring, and settlement infrastructure

• maintain buffers and safety margins

Capital providers do not receive a revenue share. They earn a predictable interest rate on capital deployed into the hedge facility. This reduces variability and ensures the system remains solvency-first.

A 10% liquidation fee is applied when a position is force-closed and is retained entirely by Dripster to offset hedge slippage, routing impact, and emergency unwind costs.