# GMX Fees Methodology

## 1. Overview

The total value paid by users to trade on GMX V1 and GMX V2 is measured by the Fees metric. These fees, which include perpetual trading fees, spot trading fees, and price impact fees, are generated across the protocol's spot and perpetual exchange products. Economic activity and user demand for GMX are represented by these fee generations. Collected fees are distributed to liquidity providers and protocol participants, serving as a key indicator of the protocol's revenue-generating capacity.

## 2. Data sources

- **Blockchain events**: `CollectMarginFees` and `CollectSwapFees` events from `Vault` contracts; `EventLog1` and `EventLog2` events from `EventEmitter` contracts; and `TradeEvent` instructions from the `GMSol` program, covering Arbitrum, Avalanche, Solana, MegaETH, and 3 other chains
- **External data**: End-of-day price feeds for assets and native gas assets

## 3. Step-by-step calculation

### Component A: GMX V1 perpetual and spot fee extraction

- **Purpose**: Capture trading fees from GMX V1 perpetual and spot trading
- **Logic**: For EVM chains, margin fees are extracted from `CollectMarginFees` events from `Vault` contracts, and spot swap fees are extracted from `CollectSwapFees` events from `Vault` contracts. For Arbitrum, the raw asset amount is extracted from the fee USD field due to a contract emission characteristic, while for Avalanche, the fee asset amount is extracted directly. Collected amounts are normalized by decimal precision and converted to USD using end-of-day price feeds.

### Component B: GMX V2 perpetual fee calculation

- **Purpose**: Calculate trading fees from GMX V2 perpetual contracts
- **Logic**: Perpetual trading fees are extracted from `EventLog1` events emitted by `EventEmitter` contracts. The total fee is calculated by summing the borrowing fee, the position fee (calculated by multiplying the position fee asset amount by the average of the minimum and maximum collateral asset prices), and the liquidation fee (calculated by multiplying the liquidation fee asset amount by the average of the minimum and maximum collateral asset prices). Origin chains are mapped using order creation events to attribute fees to the correct source chain, falling back to the execution chain if no creation event is found.

### Component C: GMX V2 swap and price impact fee extraction

- **Purpose**: Capture swap fees and price impact fees from GMX V2
- **Logic**: Swap fees (including swap, deposit, and withdrawal actions) are extracted from `EventLog1` events from `EventEmitter` contracts by summing the receiver fee amount and the pool fee amount, which are then multiplied by the asset price. Price impact fees are extracted from `EventLog1` events from `EventEmitter` contracts using the distribution amount. Origin chains are mapped using order, deposit, and withdrawal creation events to attribute fees to the correct source chain.

### Component D: GMX Solana fee extraction

- **Purpose**: Calculate fees from GMX on Solana
- **Logic**: Fees are extracted from the `GMSol` program. Fee components, including order fees (pool and receiver), borrowing fees, and liquidation fees, are extracted directly from `TradeEvent` instructions. Funding fees and position impact pool distributions are excluded. All extracted components are normalized and summed to calculate total USD fees.

### Component E: Final aggregation and normalization

- **Purpose**: Combine all fee components into a unified daily metric
- **Logic**: All calculated fees from GMX V1, GMX V2, and GMX Solana are aggregated by day, chain, and asset. Asset amounts are normalized by decimal precision and converted to USD using end-of-day price feeds. The final metric is zero-filled for days with no activity and filtered based on chain availability.

*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

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

GMX is a non-custodial exchange for spot and perpetual contracts, live on Arbitrum, Avalanche, MegaETH and Solana. GMX was founded by an anonymous team and launched in 2021.

GMX token holders own and govern the protocol. On the EVM deployments they take a cut of the total trading fees paid by traders (revenue), split between GMX buybacks and the treasury. On Solana the protocol's share accrues to that deployment's treasury rather than to GMX token holders.

GMXGMX

Fees

Fees

Competitive landscape

Chain breakdown