Fees of Options

Transaction Fee

The platform will charge transaction fees from users and this will be calculated into realized PnL. The transaction fee is charged in USDT no matter opening or closing a position.

The transaction fee is determined based on the token variety and the order type (Maker or Taker). The system will freeze the maximum amount of transaction fees that may be incurred in the transaction when the user is placing an order. The fee is charged when the order is filled, otherwise will be automatically released to the user’s account. Meanwhile, there is an upper limit for the transaction fee of each transaction, which shall not exceed the 12.5% of the premium paid or received.

Frozen transaction fee= min{ Commission quantity * max (Maker transaction fee for opening the position，Taker transaction fee for opening the position，Maker transaction fee for closing the position，Taker transaction fee for closing the position)，Commission quantity * Type price * Face value * Upper limit for transaction fee }

Transaction fee= min (Transaction quantity* Fixed transaction fee for each cont, Transaction quantity* Transaction price* Face value *Upper limit for transaction fee)

Transaction fee for BTC options trading

Transaction fee for opening positions: Maker 0.002 USDT/cont; Taker 0.005 USDT/cont

Transaction fee for closing positions: Maker 0.002 USDT/cont; Taker 0.005 USDT/cont

Options Trading Fees >>>

Example:

Alex wants to buy 1000 conts of BTC call options at the type price 25 USDT, then the transaction fee needs to be frozen for this order is min {1000 * 0.005, 1000 * 25 * 0.001 * 12.5%} = 3.125 USDT;

If the order is completely filled as a marker order, the transaction fee for this order is min (1000 * 0.002, 1000 * 0.001 * 25 * 12.5%) = 2 USDT

Delivery Fee

If the user holds the positions until the expiration date, the system will exercise the options to close those open positions. Out-of-the-money and at-the-money options will automatically become invalid at the expiry and the seller's performance margin will be released. In-the-money options will be automatically exercised by the system at the delivery. In-the-money options buyer will receive delivery incomes and pay delivery fees, while the seller of in-the-money options will pay delivery profits to the buyer but will be free from paying delivery fees.

The delivery fees for call options is calculated in BTC while the delivery fees for put options is calculated in USDT. The formula is as below:

Delivery fee for call options = min (Delivery quantity * Fixed transaction fee for each cont / Delivery price, Delivery income* Upper limit for delivery fee)

Delivery fee for put options = min (Delivery quantity * Fixed transaction fee for each cont, Delivery income* Upper limit for delivery fee)

The upper limit of delivery fee is 12.5%

Delivery fee of BTC options    

Delivery fee for call options: 0.002USDT/cont

Delivery fee for put options: 0.002USDT/cont

Example 1: Buyer A holds 1000 conts of BTC call options with strike price 9200 USDT. Assume on the expiration date the delivery price is 10,000, buyer A wants to exercise this in-the-money options, then the delivery fee that buyer A has to pay is min [1000 * 0.002 / 10000, (10000 – 9200) * 0.001 * 1000 / 10000 * 12.5%] = 0.0002 BTC

Example 2: Buyer B holds 1500 conts of BTC put options with strike price 9000 USDT. Assume on the expiration date the delivery price is 8985, buyer B wants to exercise this in-the-money options, then the delivery fee that buyer B has to pay is min [ 1500 * 0.002, (9000 – 8985) * 0.001 * 1500 *12.5%] = 2.81 USDT

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