Fees & Revenue Share

How funding is priced for each leveraged position.

Multiply uses a simple, predictable fee model that aligns incentives across front-ends, liquidity providers, and Dimes. 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 front-end).

All fees are designed to cover hedging costs, compensate liquidity providers and front-ends, and fund Dimes' 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 between 1.0% and 1.5%, scaled with leverage.

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

EntryFee = 1,000 × 5 × 0.0125 = $62.50

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% → Dimes

Used to:

• fund hedging operations and routing

• pay interest to capital providers

• support risk modeling, monitoring, and settlement infrastructure

• maintain buffers and safety margins

Dimes operates with a committed capital approach on the liquidity side, meaning Capital Providers allocate a defined facility size that Multiply can draw on continuously as positions are opened and recycled. This guarantees front-ends and their users reliable access to credit capacity at all times, unlike pool-based models where available liquidity fluctuates with deposits and withdrawals and cannot be promised to integration partners.

A 10% liquidation fee is assessed on remaining user equity when a position is force-closed, and is retained entirely by Dimes to offset hedge slippage, execution impact, and emergency unwind costs.