# BMX Classic Fees Methodology

## 1. Overview

Fees measures the total value paid by users to interact with the BMX Classic protocol. This includes costs associated with spot trading, leveraged perpetual trading, and the minting or burning of the BLT liquidity provider asset. These fees represent the total economic value generated by the protocol's core trading and liquidity infrastructure.

## 2. Data sources

- **Blockchain events**: `CollectMarginFees`, `CollectSwapFees`, `SellUSDG`, `BuyUSDG`, and `Swap` events from `Vault` contracts, covering Base
- **External data**: End-of-day price feeds for traded assets

## 3. Step-by-step calculation

### Component A: Margin and swap fee collection

- **Purpose**: Capture direct fee payments from perpetual and spot trading activities.
- **Logic**: Fee amounts are extracted from `CollectMarginFees` and `CollectSwapFees` events emitted by `Vault` contracts. Margin fees represent the costs paid by users during leveraged perpetual trading, while swap fees represent the costs paid during direct asset exchanges.
- **Key fields**: `amount` (fee quantities), `token_address` (asset identification)

### Component B: BLT minting and burning fees

- **Purpose**: Capture fees associated with the entry and exit of liquidity providers.
- **Logic**: Fees are calculated from `BuyUSDG` and `SellUSDG` events from `Vault` contracts. The fee amount is derived by multiplying the `usdgAmount` by the `feeBasisPoints` recorded in the event. These fees are paid by users when providing liquidity to or withdrawing liquidity from the BLT pool.
- **Key fields**: `usdgAmount` (transaction volume), `feeBasisPoints` (applied fee rate)

### Component C: Spot trading fee derivation

- **Purpose**: Calculate fees generated from non-leveraged spot trades.
- **Logic**: Trading activity is identified via `Swap` events from `Vault` contracts. Notional trading volume is determined by taking the lesser USD value between the input asset and the output asset to mitigate the impact of potential price manipulation. Derived fees are then calculated by multiplying this notional trading volume by the `feeBasisPoints` specified in the event.
- **Key fields**: `amountIn` (input quantity), `amountOut` (output quantity), `feeBasisPoints` (applied fee rate)

### Component D: USD conversion and aggregation

- **Purpose**: Normalize all fee components into a single currency for reporting.
- **Logic**: All identified fee amounts are normalized by their respective decimal precision. Values are converted to USD using end-of-day price feeds for the underlying assets. Daily totals are aggregated across all fee types with UTC day boundaries.

*This methodology was automatically generated by Token Terminal's methodology analyzer.*

Total value users pay to use a protocol (gross fees, user-paid fees).

Fees

Derivative exchanges

Liquidity providers deposit funds into BMX and receive trading fees from traders (supply-side fees).

BMX is a non-custodial exchange for spot and perpetual contracts built on Base. BMX has three product lines: Classic, Freestyle, and Based MediaX

BMX tokenholders own and govern the protocol. They currently take a cut of the total trading fees paid by traders (revenue).

BMX Classic

Archived

Fees

Fees

Chain breakdown