# Fees & Calculations

Fee and calculations are formulated as per below.

#### Opening trade fee calculation:

((Entrance fee %\<MONIL TO GIVE THIS> \* target amount) \* current target price) / current collateral

#### Interest fee calculation:

Interest fee percentage is fixed at 10% APY. Interest is calculated to be the APY divided by the amount borrowed and is paid out after every block (approximately 6 seconds)

#### Transaction fee:

Rowan is required to pay for transaction fees. This includes any actions taking by the trader or match (Including: Opening a position, Close a trade, Request closure, Deposit / Withdrawl). To purchase Rowan, please click on the following [link](https://docs.sifchain.finance/using-the-dex/get-ready-to-trade).&#x20;

Note: You will be able to receive Rowan via a faucet button (coming soon)

#### Trader Profit and Loss calculation:

((current token amount \* current token price) / current collateral) - ((target token amount \* target token price) / collateral token price at time of opening trade) - (any interest paid + pending interest)

#### Matching Lending calculation:

The formula for borrowed tokens against the collateral is as follows:

(300% \*  collateral amount) + collateral amount&#x20;

Example:

* Trader has a collateral of 100 USDC with a leverage of x5.&#x20;
* The trader wishes to borrow 400 USDC for this trade
* The matcher will be able to  loan 300 USDC against the total 500 USDC order.
* The trader will be able to  take a maximum profit or loss of 300% of the original position

#### Leverage position calculation:&#x20;

Leverage for a position is displayed as (position size) / (position collateral).
