> For the complete documentation index, see [llms.txt](https://docs.shieldex.io/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.shieldex.io/getting-started/general/about-trading.md).

# About Trading

### What is Funding Fee?

Funding fee is the cost borne by the users to keep positions open for the funding interval. The fee will be prepaid for opening a position, and accumulated through funding intervals. Please refer to the [Pricing Method](https://docsend.com/view/7k98hrtjtscc5w7j) for additional details. 

### **What is Trading Fee?**

Trading fees are applied to open a new position. Currently, the fee is fixed at 0.1% of the notional value of the contract.

### What is Liquidation and the Maintenance Margin?

When you open a trade, you'll be paying ongoing funding fees in order to maintain the open position. As your funding balance decreases, near to the point where your position may be open for one more period - it's important to remember the locked Maintenance Margin (MM) which is included in your Funding Balance.

A user can be liquidated based on the following formula: Funding Balance = Available Balance + Maintenance Margin. Liquidation occurs when Available Balance < Funding Fee. The MM is sent over to the Insurance Fund and your position is closed.

In order to avoid forced liquidation, you will need to keep in mind that the MM is included in your funding balance. When your balance minus the MM is less than your funding fee, your position will be liquidated.


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