# Jupiter Perps Fees Methodology

## 1. Overview

Fees for Jupiter Perps are measured as the total value paid by users to interact with the perpetual exchange. These fees are generated through trading activities, including opening and closing leveraged positions, liquidations of undercollateralized positions, and asset swaps within the liquidity pool. Additionally, fees associated with the addition and removal of liquidity from the underlying vault are captured. This metric is used to evaluate the economic value generated by the Jupiter Perps product.

## 2. Data sources

- **Blockchain events**: `AddLiquidity`, `PoolSwap`, `RemoveLiquidity`, `LiquidateFullPosition`, `DecreasePosition`, and `IncreasePosition` events from `Perps` programs, plus `AddCustody` instructions on Solana
- **External data**: End-of-day price feeds and asset metadata

## 3. Step-by-step calculation

### Component A: Position and liquidation fee extraction

- **Purpose**: To capture fees paid by traders for managing leveraged positions.
- **Logic**: `IncreasePosition`, `DecreasePosition`, and `LiquidateFullPosition` events are parsed from `Perps` programs. The fee values are extracted from the `fee_usd` and `liquidation_fee_usd` fields. These amounts are normalized by decimal precision to represent their true USD value at the time of the transaction.
- **Key fields**: `fee_usd`, `liquidation_fee_usd`, `block_timestamp`

### Component B: Pool swap fee extraction

- **Purpose**: To calculate fees generated from asset swaps performed within the perpetual liquidity pool.
- **Logic**: `PoolSwap` events are parsed and joined with `AddCustody` instructions to identify the specific asset being swapped. The fee amount is calculated as the difference between the total output amount and the output amount after fees have been deducted.
- **Key fields**: `amount_out`, `amount_out_after_fees`, `token_address`

### Component C: Liquidity deposit and withdrawal fee extraction

- **Purpose**: To identify fees paid by liquidity providers when interacting with the project's vault.
- **Logic**: `AddLiquidity` and `RemoveLiquidity` events are parsed from `Perps` programs. For deposits, the fee is determined by calculating the difference between the USD value of the deposited assets and the USD value of the liquidity assets minted. For withdrawals, the fee is derived by comparing the token amount after fees to the total removal amount and applying that ratio to the total USD value of the removal.
- **Key fields**: `token_amount_usd`, `mint_amount_usd`, `remove_amount_usd`, `token_amount_after_fee`, `remove_token_amount`

### Component D: Normalization and final aggregation

- **Purpose**: To provide a unified daily fee metric denominated in USD.
- **Logic**: All identified fee components are aggregated to a daily granularity using UTC day boundaries. For components not already denominated in USD, amounts are normalized by decimal precision and multiplied by end-of-day price feeds. All fees are then summed and attributed to the Jupiter Perps product identifier.
- **Key fields**: `timestamp`, `fees`, `product_id`

*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

Jupiter aggregates liquidity from multiple non-custodial exchanges. Integrators set custom fees. Liquidity providers deposits funds into the perpetual exchange. Both receive fees from traders (supply-side fees).

Jupiter is a non-custodial DEX aggregator and exchange for perpetual contracts built on Solana. Jupiter was founded by an pseudonymous founder meow and launched in 2021.

JUP token holders own and govern the protocol. They currently take a cut of the total perpetual and integrator trading fees paid by traders (revenue). Jupiter's investors include White Hilt Capital, etc.
