Fees and costs

Arlo charges one fee: $150, which is 5% of the $3,000 Arlo, paid at the end out of the wallet. Most of it goes to the Backer. GMX and the network charge their own costs too. Here is each one.

Arlo’s fee

The fee is $150 for each Arlo, a fixed 5% of its $3,000 size. It is taken from the wallet at the end, not at the start, so the Trader trades the whole $3,000 from day one.

Where the $150 goes.

$120 of it is the Backer’s bonus. $30 is Arlo’s share.
Arlo is paid last, after the Backer. In an Arlo that ends badly, Arlo loses its share before the Backer loses any bonus.
The fee stays the same if the Trader ends early. It pays for the Arlo, not the days.
For the Trader, it means the wallet must grow +5% to break even, before trading costs.

Where every dollar goes

Say the wallet ends up 10%, at $3,300. The Trader made $300 on the wallet. The Backer gets $2,120, Arlo gets $30 and the Trader keeps $1,150: $150 more than they put in, before trading costs.

Money in, money out. Switch between a winning and a losing Arlo.

GMX’s trading costs

GMX charges each trade a fee to open it and a fee to close it. While a trade is open, it pays a fee for borrowing, and a funding payment that can go to you or from you. A big order can also get a slightly worse price, which GMX calls price impact.

These costs come out of the trade itself, and your receipt shows them as trading costs. GMX sets the rates and can change them. GMX’s fees page ↗ lists the current ones.

Network fees

Every action on Arbitrum costs a small network fee, paid in ETH. Your wallet pays it when you put money in or cancel a place. On testnet, it is free test ETH.

GMX also asks for a small fee in ETH with each order, to pay for filling it. It sends back the part it does not use.

If trades are closed for you at the end, Arlo pays the network cost of closing them. Nothing comes out of the Trader’s share for it.

Money held back, and when it comes back

Two parts of the loss room are held back while trades are open. Neither is charged to anyone.

The closing allowance. $1 and 0.10% of each trade’s size is held back so the trade can always be closed. It goes back into the room when the trade closes.
The cushion. $50 of the Trader’s money stays in the wallet, between the line and what is owed. At the end it goes to the Trader, unless trades closed past the line.