# Dynamic close fee for Degen Mode

APX V2 Degen Mode uses a dynamic close fee model. This fee is designed to charge fees by PnL and protect users from losses.

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**How does it work?**

![](https://lh5.googleusercontent.com/x-j0hkF1yifTiEfpjNKi9QxklpcglxrspGw_zyq7T_x9jhm4amRlqWuVhID7Vc4g_ZRbTZSvgADb3SdkVDM7URENgpX-VTHzQO_ub3DjZkywItw1DA8WUk-x2_uxGOTrKLGdVRkbuN0Sp0Zwgygmi8c)

where:

* Pnl is the profit or loss on the position
* shareRate is the share rate, which is the percentage of the notional that is paid in fees
* Notional is the amount of money that is used to open the position
* closeMinRate is the minimum closing fee rate, which is the lowest amount that you can pay to close a position

**Parameters:** 

![](https://lh5.googleusercontent.com/JBltC7k0bpU6vJBnkwdmtndsWuXaY1ti1OMzqVeMkOmQMuaptZTTy7m2zve9BfsywU12w2Nylz4JVI033tzLicDAvbThaljCFFFxcj1apyL6vqmVBWTJroohNd8ShV6mB0LPrEeOO-sTIq4c6u_nq7Q)

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Example:

For example, if you have a position with a profit of $100, a share rate of 15%, and a notional of $600, then the closing fee rate would be:

Closing fee rate = Max(100 \* 15% / 600, 0.03%) = 0.03%

In this case, the closing fee rate would be 0.03%, which is the minimum closing fee rate.<br>

Note:

The execution fee will only be charged when a position is opened. It is set at 0.5 USD (BNB Chain) / 0.2 USD (Arbitrum)/ 0.01 USD (opBNB)/ 0.3 USD (Base) similar to what is being charged when trading classic perpetual trading pairs. There is no opening position fee.

In the event of liquidation, the 85% liquid lost rate includes close fee.