# Fees Methodology

## Overview

Fees measure the total value users pay to use a project’s application. Some examples include interest paid by borrowers (lending), trading fees paid by traders (DEX), and transaction fees paid by users (L1 & L2 blockchain). This metric shows how much the project is able to generate economic value.

## Data sources

- Smart contract events and program instructions capturing fee-generating activities
- End-of-day price feeds for USD conversion
- Asset metadata and historical yield rates

## Common calculation approaches

### Trading and swap fees
For decentralized exchanges and social trading platforms, swap and trade data is tracked from smart contracts and program instructions. For example, `Swap` events are tracked from Uniswap V3 pools, while trade data is tracked from program instructions on pump.fun.

### Lending and interest fees
For lending protocols, borrower interest and flash loan premiums are tracked from smart contract events. For instance, `Withdraw`, `FlashLoan`, and `LiquidationCall` events are tracked from Aave contracts to determine the total economic value paid by users.

### Network transaction fees
For L1 and L2 blockchains, total transaction fees are tracked from network execution data. On Tron, these fees are comprised of energy and bandwidth resource costs or direct TRX burns.

### Reserve-based yield
For stablecoin issuers, economic value is tracked from the reserve assets backing the issued tokens. For issuers such as Tether, fees are calculated based on historical yield rates and the outstanding supply of assets like Tether USD.

**Note:** The calculation approaches and protocol examples above are representative patterns. Individual protocol implementations may vary.

*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 markets

tradeXYZ earns a deployer share of trading fees on the perpetual markets it has deployed under Hyperliquid's HIP-3 framework. Markets are executed on Hyperliquid's HyperCore L1 order book; tradeXYZ does not operate its own matching engine. The default HIP-3 fee split allocates 50% of each user-paid fee to Hyperliquid and 50% to the deployer; tradeXYZ's deployerFeeScale is 1.0, so the standard split applies.

tradeXYZ offers USDC-settled perpetual contracts on US equities (TSLA, NVDA, AAPL, MSFT, ...), indices (S&P 500, XYZ100, NIFTY, KR200), commodities (gold, silver, Brent, WTI, copper), and FX (EUR, JPY, GBP, KRW), with leverage from 10x to 50x. All 77+ markets are deployed under the HIP-3 `xyz` namespace and execute on Hyperliquid's HyperCore order book. tradeXYZ runs all markets in HIP-3 growth mode, reducing user-facing fees by 90% versus standard HIP-3.

tradeXYZ is the first HIP-3 (builder-deployed perpetuals) deployment on Hyperliquid and the dominant builder by open interest, deployed by wallet 0x88806a71d74ad0a510b350545c9ae490912f0888. tradeXYZ is operated as a private company; no token has been issued.

SMH PerpetualSMH

Fees

Fees