One detail in TermMax's design as a decentralized options trading protocol stands out to me: opening an Alpha position carries a 7% fee on the premium, while take-profit or exercise fees start at 1.9% of notional.
At first glance, 7% looks like the more expensive number. But the percentages are applied to very different bases.
Premium is only one part of the position's value. Notional can be much larger, so a 1.9% fee on notional can outweigh a 7% fee on premium in dollar terms even though the headline percentage is smaller.
What I don't know yet is which fee layer matters more once an Alpha trade moves from entry to realized profit.
That also changes the denominator I care about. Absolute fee dollars are more useful than the percentages alone, but the stronger measure is how much of the trade's gross profit those fees actually consume.
That is the stronger signal because it puts both fee bases inside the same economic outcome instead of comparing percentages that were never directly comparable in the first place.
I'd learn more from total fees as a share of realized profit across different Alpha positions than from comparing 7% and 1.9% in isolation.
The question is whether TermMax's smaller notional-based percentage stays secondary once profitable trades are settled, or becomes the fee that takes the larger share of the outcome.
I am watching premium-to-notional ratios, fee dollars by component, and total fees as a share of realized P&L.
@TermMax #TermMax $BTW $ACE $BOME
At first glance, 7% looks like the more expensive number. But the percentages are applied to very different bases.
Premium is only one part of the position's value. Notional can be much larger, so a 1.9% fee on notional can outweigh a 7% fee on premium in dollar terms even though the headline percentage is smaller.
What I don't know yet is which fee layer matters more once an Alpha trade moves from entry to realized profit.
That also changes the denominator I care about. Absolute fee dollars are more useful than the percentages alone, but the stronger measure is how much of the trade's gross profit those fees actually consume.
That is the stronger signal because it puts both fee bases inside the same economic outcome instead of comparing percentages that were never directly comparable in the first place.
I'd learn more from total fees as a share of realized profit across different Alpha positions than from comparing 7% and 1.9% in isolation.
The question is whether TermMax's smaller notional-based percentage stays secondary once profitable trades are settled, or becomes the fee that takes the larger share of the outcome.
I am watching premium-to-notional ratios, fee dollars by component, and total fees as a share of realized P&L.
@TermMax #TermMax $BTW $ACE $BOME
