Yeah your right it is a typo the metric space should be (X,\phi)
so triangle inequality is
\phi(x,y) \leq \frac{K\phi(x,)}{1+K\phi(x,y)}
\leq \mid \frac{K\phi(x,z)}{1+K\phi(x,z)}\mid + \mid \frac{K\phi(z,y)}{1+K\phi(z,y)}\mid
= \mid \frac{K\phi(x,z)}{1+K\phi(x,z)} +...