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.

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Derivative exchanges

# GMX Revenue Methodology

## 1. Overview

Revenue is measured as the portion of trading fees retained by the GMX protocol, representing the earnings generated before operating expenses and token incentives. This metric is utilized to assess the protocol's financial sustainability and the value captured for the treasury and asset holders. Fees are collected across GMX V1, GMX V2, and the Solana deployment of GMX. The retained revenue is determined by applying specific protocol take rates to the total fees generated from perpetual trading, spot swaps, borrowing, and liquidations.

## 2. Data sources

- **Blockchain events**: `CollectMarginFees` and `CollectSwapFees` events from `Vault` contracts for GMX V1; `EventLog1` and `EventLog2` events from `EventEmitter` contracts for GMX V2; and `TradeEvent` instructions from the `GMSol` program on Solana, covering Arbitrum, Avalanche, Solana, and MegaETH
- **External data**: End-of-day price feeds for collected assets

## 3. Step-by-step calculation

### Component A: GMX V1 fee collection and revenue allocation

- **Purpose**: Capture and calculate the protocol's share of fees from GMX V1
- **Logic**: Perpetual trading fees are extracted from `CollectMarginFees` events, and spot trading fees are extracted from `CollectSwapFees` events from `Vault` contracts. Collected fee amounts are normalized by decimal precision and converted to USD using end-of-day price feeds. Protocol revenue is calculated by applying a historical revenue split percentage to the total fees, which is set to 50% starting August 31, 2021, and updated to 30% starting November 1, 2021.
- **Key fields**: `amount`, `asset_address`, `block_timestamp`

### Component B: GMX V2 fee collection and revenue allocation

- **Purpose**: Capture and calculate the protocol's share of fees from GMX V2
- **Logic**: Perpetual trading fees, borrowing fees, and liquidation fees are extracted from `EventLog1` and `EventLog2` events from `EventEmitter` contracts. Perpetual trading fees are calculated by multiplying the position fee amount by the mean collateral asset price (the average of the minimum and maximum collateral asset prices), then adding borrowing fees and the liquidation fee amount multiplied by the mean collateral asset price. Swap fees are extracted from swap fee events from `EventEmitter` contracts, calculated by summing the receiver fee amount and pool fee amount, normalizing by decimal precision, and multiplying by the asset price. Price impact fees are also extracted but are excluded from revenue calculations by applying a 0% take rate. Protocol revenue is calculated by applying a 37% revenue split percentage to the perpetual and swap fees starting July 13, 2023.
- **Key fields**: `amount`, `borrowing_fee_amount`, `liquidation_fee_amount`, `receiver_fee_amount`, `pool_fee_amount`, `token_price`, `min_price`, `max_price`

### Component C: Solana deployment fee collection and revenue allocation

- **Purpose**: Capture and calculate the protocol's share of fees from the Solana deployment of GMX
- **Logic**: Order fees, borrowing fees, and liquidation fees are parsed from `TradeEvent` instructions from the `GMSol` program. The protocol's revenue is calculated as 100% of the receiver's share of these fees, which includes the receiver portion of order fees, borrowing fees, and liquidation fees. Funding fees and position impact pool distributions are excluded. These amounts are normalized by decimal precision and converted to USD.
- **Key fields**: `order_fee_receiver`, `borrowing_fee_receiver`, `liquidation_fee_receiver`

### Component D: Final aggregation

- **Purpose**: Aggregate revenue across all products and chains
- **Logic**: Revenue from GMX V1, GMX V2, and the Solana deployment is summed by day, chain, and product. Missing days are filled with zeros to ensure a continuous daily time series.
- **Key fields**: `timestamp`, `chain_id`, `product_id`, `revenue`

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

fees * take_rate (illustrative — revenue is observed directly per project, not derived from take_rate)

Fee revenue retained after supply-side payouts. Before cost of revenue (e.g. L2 DA fees) and before operating expenses.

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Revenue

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