TIP-1: Fee Discounts
Summary
TIP-1 introduces two things that together determine the builder fee you pay on supported perpetual DEXs:
Volume-based fee tiers. Your rolling 14-day trading volume sets your base rate, from 2.5 bps down to 1 bps.
TREAD holder discounts. The TREAD you hold in your Tread wallet reduces that base rate by a fixed percentage, from 10% up to 100%.
Both apply to all retail and institutional clients on exchanges where the builder fee applies.
Where TIP-1 applies
The builder code fee is currently charged only on trades routed through Tread to these perpetual DEXs:
Extended
Hyperliquid
Nado
Ondo
Pacifica
Perpl
RiseX
Trades on any other venue are not charged this fee, so there is nothing to discount. No volume-based fees are applied to trades on centralized exchanges (Binance, Bybit, OKX, and others).
Volume-based fee tiers
Your base rate is set by your rolling 14-day trading volume across the eligible venues above. Volume from all eligible venues is combined into a single total.
Tier
14-day volume
Base fee
Tier 0
Under $1M
2.5 bps
Tier 1
$1M to under $5M
2 bps
Tier 2
$5M to under $10M
1.75 bps
Tier 3
$10M to under $50M
1.5 bps
Tier 4
$50M to under $100M
1.25 bps
Tier 5
$100M and above
1 bps
New accounts and accounts with no eligible volume start at Tier 0.
TREAD holder discounts
Holding TREAD reduces your base fee by a fixed percentage.
TREAD held
Tier
Fee discount
1,000+
1
10%
10,000+
2
25%
100,000+
3
50%
1,000,000+
4
100%
Accounts holding 1,000,000 TREAD or more pay no builder fees.
Which TREAD counts
Your TREAD balance is measured at your Tread wallet address, the same wallet you fund to trade on DEXs (see DEX Trading Wallet Setup). Balances on Ethereum mainnet and on HyperCore are added together. You do not need to bridge or consolidate to qualify.
TREAD held anywhere else, including exchange accounts and wallets that are not your Tread wallet, does not count.
Daily snapshot
Your discount tier is based on a daily snapshot of your Tread wallet balance, not your live balance. If you move TREAD into your Tread wallet, the new tier takes effect after the next snapshot. If you move TREAD out, the old tier remains until the next snapshot.
How your final rate is calculated
Example: You traded $12M in the last 14 days, putting you in Tier 3 at 1.5 bps. You hold 10,000 TREAD, giving a 25% discount. Your final fee is 1.5 × 0.75 = 1.125 bps.
Example: You are a new account (Tier 0, 2.5 bps) holding 100,000 TREAD (50% discount). Your final fee is 1.25 bps, the same as a Tier 4 trader with no TREAD.
Where to see your tier and savings
Click your $TREAD holdings in the top right of app.tread.fi, next to the wallet icon. The panel shows your current volume tier, your TREAD discount tier, your effective fee, and your lifetime fee savings.
Your fee savings also determine your share of TIP-2: Tread Vault distributions.
Venue-specific caveats
Pacifica does not support dynamic bps. Fees there remain flat at 2 bps regardless of tier or discount.
Ondo rounds fees to whole basis points, so the 10% and 25% discount tiers do not change the fee charged there.
FAQ
Does TIP-1 apply to spot or CEX trading? No. The builder fee is only charged on the perpetual DEXs listed above, so the discount only applies there.
Do I need to lock or stake TREAD? No. TIP-1 only requires holding TREAD in your Tread wallet. There is no lockup and you can move it at any time; your tier updates at the next daily snapshot.
Is the discount applied per exchange or across all exchanges? Your volume tier and TREAD discount are computed once and applied to every eligible venue, subject to the venue-specific caveats above.
I hold 1,000,000 TREAD. Do I pay anything? You pay no Tread builder fee. Exchange-native trading fees (maker/taker fees charged by the venue itself) are unaffected by TIP-1.
Nothing in this document creates an entitlement, a claim on any entity's assets, or any representation about the price of TREAD. Fee tiers and discount levels may be revised by a future TIP. This page is for informational purposes only and does not constitute investment advice or an offer to sell or a solicitation to buy any asset.
Last updated
Was this helpful?