Understanding how futures trading fees are calculated is crucial for any trader looking to manage costs and maximize profitability. This guide breaks down the key components and formulas you need to know.
Understanding Fee Tiers and User Levels
Your trading fees are primarily determined by your user level, which is categorized into two main types: Regular and Professional. Professional users are further classified into sub-levels based on their total assets and trading volume over the past 30 days. Each level offers different maker and taker fee rates.
It is important to note that orders which are not filled can be canceled without incurring any fees. Maker orders, which provide liquidity to the order book by not executing immediately, typically enjoy lower fee rates. Taker orders, which remove liquidity by executing immediately against existing orders, are charged a slightly higher rate.
Futures Trading Fee Calculation Formulas
The specific formula used to calculate your fees depends on whether you are trading coin-margined (coin-based) contracts or USDT-margined (stablecoin-based) contracts.
For Coin-Margined Contracts
- Opening Fee Formula: Contract Face Value × Number of Contracts / Entry Price × Fee Rate
- Closing Fee Formula: Contract Face Value × Number of Contracts / Exit Price × Fee Rate
For USDT-Margined Contracts
- Opening Fee Formula: Contract Face Value × Number of Contracts × Entry Price × Fee Rate
- Closing Fee Formula: Contract Face Value × Number of Contracts × Exit Price × Fee Rate
Example Calculation 1 (Coin-Margined):
Imagine opening a BTC contract with an entry price of $10,000 for 100 contracts. If your taker fee rate is 0.05%, the calculation is:
100 100 / 10,000 0.0005 = 0.0005 BTC
Example Calculation 2 (USDT-Margined):
Now, open a BTC USDT-margined contract at $10,000 for 100 contracts with the same taker fee rate:
100 0.01 10,000 * 0.0005 = 5 USDT
Standard Fee Rates for Major Cryptocurrencies
For perpetual contracts, popular cryptocurrencies like BTC, ETH, and LTC generally follow a fee structure where maker fees are lower than taker fees. For instance, a Level 1 user might pay a 0.02% maker fee and a 0.05% taker fee. Rates can vary for other coins and are subject to change based on market conditions and promotions. To view real-time fee schedules for all supported assets, always refer to the latest official information.
Key Concepts Explained
User Level and 30-Day Trading Volume
Your user level is calculated based on your total trading volume across all contracts over the past 30 days. This volume is converted to a USD value. The system calculates the USD equivalent of your trading volume by first converting it to BTC using the coin's USD price, and then converting that BTC amount to USD using the daily BTC/USD average price (calculated as [open price + close price] / 2). This rolling 30-day volume is updated daily.
Master and Sub-Accounts
For users with multiple accounts, the master account's level is determined by the combined 30-day trading volume of all its associated sub-accounts. A newly created sub-account will inherit the fee tier of its master account after 24:00 UTC on the day it is created.
Maker vs. Taker Orders
- A Maker Order is an order placed at a specific price that does not fill immediately. Instead, it rests in the order book, waiting for another trader to match it. By adding liquidity, you are rewarded with a lower maker fee when the order is eventually filled. For example, placing a buy order below the current best ask price.
- A Taker Order is an order that is filled immediately by matching against existing orders in the book. By taking liquidity, you pay a slightly higher taker fee. For example, placing a market buy order.
Liquidation Fees
If your position is liquidated due to insufficient margin, a liquidation fee will be charged. This fee is calculated using the taker fee rate of your current user level.
Daily Withdrawal Limits
Your fee tier also influences your daily withdrawal limit. All the currencies in your account are converted to USD to calculate the total value withdrawn. This total must not exceed the limit set for your level. This limit is also affected by your identity verification status. If you require a limit beyond your current tier, you must contact customer support.
Frequently Asked Questions
What is the difference between maker and taker fees?
Maker fees are charged when you provide liquidity to the market by placing an order that isn't filled immediately. Taker fees are charged when you remove liquidity by placing an order that executes instantly. Maker fees are always lower to incentivize adding orders to the book.
How is my 30-day trading volume calculated?
The platform calculates the total USD value of your contract trades over the last 30 days. It does this by converting the volume of each trade into BTC based on the coin's USD price, then converting that BTC amount to USD using the daily average BTC/USD price. This rolling total is updated every day.
Do I get charged a fee for a canceled order?
No. You only incur a fee when an order is successfully filled. If you place an order and cancel it before it is matched with another trader, you will not pay any trading fee.
How can I reduce my futures trading fees?
You can qualify for lower fees by increasing your 30-day trading volume and account asset balance to reach a higher user level. Additionally, using maker orders whenever possible will ensure you pay the lowest available fee rate. You can explore more strategies for optimizing your trading costs on advanced platforms.
Are fees charged on both opening and closing a position?
Yes, a fee is typically charged for both the opening trade (enter a position) and the closing trade (exit a position). Each transaction is subject to the applicable maker or taker fee.
What happens to my fees if my position gets liquidated?
A liquidation is treated as a taker trade. Therefore, the liquidation fee will be calculated using the taker fee rate corresponding to your current user level.