Trading Fees
Volume traded across Multi-Collateral and Single-Collateral wallets is aggregated to identify the fee bracket applied.
Fee Currency
Trading fees for Multi-Collateral futures are charged in USD.
If USD is unavailable, then the non-USD funds will be converted using the collateral with the lowest haircut first. Conversion fees apply.
Conversion Fees
Conversion fees start at 0.05% for the majority of cash assets and stablecoins and 0.5% for all other collateral assets.
Cash conversion fees apply to collateral and positions in the Multi-Collateral wallet.
As this wallet allows for multiple assets to be used as collateral, margined in real-time in USD terms, there is a need to constantly assess the USD value of all currencies held in the wallet to determine portfolio value, position values and liquidation levels.
All profit and loss in the Multi-Collateral wallet are calculated in USD. In the scenarios outlined below, if the wallet does not hold enough USD as collateral, then non-USD will be converted in ascending order of haircut i.e. the collateral with the lowest haircut will be converted first to cover the Loss and/or charges.
We use index prices to value any crypto or fiat balance.
Funds will be converted and charged a conversion fee in the following scenarios:
- Profit and funding realised when profit currency is not USD
- Realised loss uncovered by USD
- Payment of interest uncovered by USD
- Payment of perpetual funding uncovered by USD
- Automatic conversion thresholds are reached
Example
Assume the following market conditions;
Index Values:
- BTCUSD: 35,000
- USDTUSD: 1.001
Haircuts:
- BTC: 4%
- USDT: 5%
Fees:
- Maker Fee 0.0200%
- Conversion Fees 0.20%
Multi-Collateral Wallet Allocation
Before fees are deducted:
|
Collateral |
Available Balance |
Available Balance (USD) |
Collateral Value (USD * (1-Haircut)) |
|---|---|---|---|
|
BTC |
0.5 BTC |
0.5*35,000 = 17,500 USD |
17,500 *97% = 16,975 USD |
|
USDT |
2000 USDT |
2000*1.001= 2002 USD |
2002 * 97% = 1,941.94 USD |
New Position
A new position is opened.
Position Notional Value: 20 ETHUSD @ 2,500 = 50,000 USD
Maker Fees (USD) : 50,000 * 0.02% = 10 USD
No USD in the Wallet to charge 10 USD.
From the available collaterals, the lowest haircut collateral is BTC.
The system will convert the 10 USD into BTC and debit the BTC Balance, charging a 0.5% conversion fee.
Maker Fees (BTC): 10 USD / (0.995) * 35,000 = 0.00028715 BTC
Multi-Collateral Wallet Allocation
After fees are deducted:
|
Collateral |
Available Balance |
Available Balance (USD) |
Collateral Value (USD * Haircut) |
|---|---|---|---|
|
BTC |
0.499714 BTC |
0.499714*35,000 = 17,489.99 USD |
17,489.99 *96% = 16,790.39 USD |
|
USDT |
2000 USDT |
2000*1.001= 2002 USD |
2002 * 95% = 1910.90 USD |
Interest
If an account has a total unrealised loss exceeding $30,000 with no USD collateral to cover or holds USD as collateral but the unrealised loss exceeds the USD balance by greater than $30,000, then interest payments will be charged of 0.005% per hour (43.8% APR) on the amount of loss above $30,000.
If the total unrealised loss not covered by USD exceeds $250,000 then there will be an automatic conversion of non-USD assets into USD such that the uncovered loss in USD is reduced to $50,000 whilst the position remains untouched.
Interest charges can be avoided by ensuring the account is sufficiently collateralised with USD.
Example
A trader has only ETH in their multi-collateral wallet (the current ether-dollar index is 2,500) and an open position in the PF_BCHUSD market of 100 BCH with an entry price of 600.
At 12 UTC, the price of the PF_BCHUSD futures contract is 299 and remains at that price level until 13 UTC
Unrealised Profit/Loss |
Interest per hour |
Interest payment |
|---|---|---|
|
PnL in USD = ( Current Futures Price - Futures Entry Price ) * Position Size = (299 - 600) * 100 BCH = 301 * 100 BCH = 30,100 USD |
Uncovered unrealised loss exceeding threshold * interest rate = 100 USD * 0.005% = 0.005 USD for the 1-hour period |
USD Fees / (Collateral index * (1 - 0.50%)) = 0.005 USD / (2,500 ETHUSD * 0.995) = 0.00000201005 ETH |
Funding Rate
The funding rate is calculated and charged continuously on perpetual contracts only – it is not a fee charged by the exchange. More information, including examples and calculations, can be found in the Linear Multi-Collateral Perpetual Contract Specifications
The funding rate is realised in USD and charged continuously as unrealised profit/loss. Every 1 hour this is realised and if a non-USD profit currency preference is selected and a payment is made to the account, then the funding rate payment will be realised in that currency. For funding rate payouts uncovered by USD, the non-USD funds will be converted using the collateral with the lowest haircut first. Conversion fees apply.
Liquidation Fee
A liquidation fee is incurred if your Multi-Collateral position is auto-liquidated due to insufficient margin. The liquidation fee will be equal to half of the minimum MM% (maintenance margin %) for the contract. For example, since the minimum MM% for the BTC Perp contract is 1% the liquidation fee would be equivalent to: (1% * 0.5) = 0.5%
You can check out the Multi-Collateral margin schedule along with the Linear Multi-Collateral Perpetual Contract Specifications to calculate the liquidation fee that would be charged.
The liquidation fee is charged in USD. For liquidation fees uncovered by USD, the non-USD funds will be converted using the collateral with the lowest haircut first. Conversion fees apply.
Last updated on: 8th August, 2023