Tomo SDK: proposition re: cancellation fee

Archive TomoX
1

Hi!

Currently when a user cancels a trading or lending order, the user has to pay a cancellation fee (0.01% for trading, 0.05% for lending).

The cancellation fee is payable to the relayer used by the user.

At this stage, the cancellation fee is an obstacle for the creation of liquidity in the markets and I was wondering if it may be possible to allow a relayer to change it (same as for the trading fee and lending fee) via TomoX SDK.

A user came to us saying that it did not wanted to add ask orders in the lending markets because of the cost to cancel it if the order is not filled or if the user wants to cancel it to then fill a bid order in the lending markets.

For example:

In the 1-day lending market, an APR of 15% gives 0.041% for the day to the lender. If the lender puts an ask order of $X at 20% and want to cancel it to fill a bid order of $X at 15%, then the lender will be losing money for that loan since the cancellation fee of 0.05% is higher than the revenue the lender would make for the day.

Given the above example, I think the relayers should have the possibility to set the cancellation fee they want (even set it to zero if they want).

Thanks,

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+1
I am the mentioned user. I wanted to put up a few offers to lend tomo today - but if I put up 10.000Tomo for lending and cancel it to adjust the fees or because I see a request on another market (or just need the funds) I cant see paying 5Tomo just like that for every adjustment/change I make on the orderbook.

My intention was to help offering liquidity on the lending order book but with those fees I decided to go back to staking…sadly :frowning:

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3

Good feedback from both of you @EmmenQC @Lostintime. We’ll discuss this internally after wrapping up the current phase of TomoX development.

I also want to emphasize how the detailed approach to this writeup, with examples, is actually quite helpful in illustrating your concerns, and it’s very much appreciated.

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