What are the fees?
Trading fees
Your trading fee depends on the Tier in which you belong. The higher your trading volume, the lower your trading fees. Check your Profile to know your Tier.
How are computed trading fees? Initially, Total fee paid = 0 and maintenance margin = opening fee reserved + closing fee reserved, with opening fee reserved = quantity / entry price X Tier1 fee and closing fee reserved = quantity / initial liquidation price X Tier 1 fee.
At the time of trading, Total fee paid = opening fee and maintenance margin = opening fee reserved + closing fee reserved - opening fee. Opening fee reserved and opening fee can be different in case of change of Tier fee.
When closing a position, Total fee paid = opening fee + closing fee and maintenance margin = opening fee reserved + closing fee reserved - opening fee - closing fee.
And users will receive P&L + margin + maintenance margin.
⚙️ Example of trading fee calculation: for a long position of quantity = $60, trade margin = 10,000 sats, leverage = 10 and entry price = $60,000, we have initial liquidation price = $54,545. Then opening fee reserved = 100,000,000 X (60/60,000)X 0.1% = 100 sats and closing fee reserved = 100,000,000 X (60/54,545) X 0.1% = 60 sats. At the time of trading, if there is no change of tier fee, total fee paid = 100 sats and maintenance margin = 100 + 60 - 100. When closing the position, if there is no change of tier fee, total fee paid = 100 + 60 = 160 sats and maintenance margin = 0.
Funding fees
Funding fees in perpetual futures maintain the price of the perpetual contract close to the price of the underlying asset, known as the “spot price”. Without an expiry date, as in traditional futures, perpetual futures require a mechanism to align the contract price with the underlying asset’s market price.
The funding rate calculation is an aggregation of individual rates determined using the same methodology employed to construct the price.
⚙️ Example of funding rate calculation:
| Exchange | BitMEX | Bybit | Binance | Deribit | LNM |
|---|---|---|---|---|---|
| Weight | 25% | 25% | 25% | 25% | - |
| Funding rate | 0.02% | 0.05% | 0.03% | 0.05% | 0.0375% |
The funding fee is updated every 8 hours according to market conditions and only applies to running positions (limit orders become running once they are executed).It is computed with the quantity expressed in BTC and withdrawn from each margin position every 8 hours at 4:00 am, 12:00 pm and 8:00pm UTC.
⚙️ Example of funding fee calculation: for a funding rate of 0.01%, a long position of Quantity = 10, with BTCUSD rate = $30,000, the funding fee is = (10/30,000) X 0.01% X 100,000,000 = 3 satoshis.