> For the complete documentation index, see [llms.txt](https://docs.bean.exchange/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.bean.exchange/trading-perp/fees/borrow-fee.md).

# Borrow Fee

* **Purpose**:
  * Prevents liquidity reservation abuse (equal long/short positions)
  * Incentivizes liquidity provision when utilization high
* **Calculation**: Based on pool utilization percentage
* **Fee Direction**:
  * More longs than shorts → longs pay fee
  * More shorts than longs → shorts pay fee
* **Rate Display**: Real-time rate shown in interface, updates based on utilization
* **Continuous Accrual**: Accumulates while position open, applied on close