What are the fees?
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 Tier1 fee and closing fee reserved = quantity / initial liquidation price Tier1 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 (60/60,000) 0.1% = 100 sats and closing fee reserved = 100,000,000 (60/54,545) 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.
What is the cost of trading on LN Markets?
Your trading fee depends on the Tier fee in which you belong. The more volume you make, the lower your trading fee will be.
| Tier | 30-Day Cumulative Trading Volume | Trading Fee |
|---|---|---|
| Tier 1 | < $250,000 | 0.1% |
| Tier 2 | < $1,000,000 | 0.08% |
| Tier 3 | < $2,500,000 | 0.07% |
| Tier 4 | < $5,000,000 | 0.06% |
The 30-Day Cumulative Trading Volume Trading Volume is computed every hour on the closed positions. Running positions are not included in the computation.
What are the funding fees?
CFD Positions are subject to a funding fee. This is because when you buy or sell a CFD, LN Markets is effectively lending you BTC.
The funding fee is updated every 8 hours according to market conditions and applies to running positions (limit orders become running once they are executed).
The funding fee is computed with the quantity expressed in BTC and withdrawn from each margin position every 8 hours at 4:00 am, 12:00 pm and 8:00pm UTC.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)*0.01%*100,000,000 = 3 satoshis.