Fees

Fee Reservation in Margin

The margin system reserves sufficient funds to cover fees for both entering and exiting a position, assuming that position exit will occur with a visible taker order, as in the case of liquidation.

Fee Reservation Scenarios

Standard Resting Orders

For orders expected to rest in the order book outside the BBO:

Total Margin = Order Margin + (Order Cost × Maker Fee) + (Order Cost × Taker Fee)

Example

Given:

• Order: Sell 1 BTC at $50,000
• Initial Margin Rate: 1%
• Maker Fee: 0.02%
• Taker Fee: 0.05%
• Order price above current best ask

Order Margin = 1 × $50,000 × 0.01 = $500
Maker Fee Reserve = 1 × $50,000 × 0.0002 = $10
Taker Fee Reserve = 1 × $50,000 × 0.0005 = $25

Total Margin Required = $500 + $10 + $25 = $535

Orders Inside the BBO

Orders placed inside the best bid and offer require two taker fees, even if they would rest, to prevent information leakage about hidden orders.

Total Margin = Position Margin + (Order Size × Mark Price × Taker Fee × 2)

Example

Given:

• Order: Buy 1 BTC at $49,950
• Current best bid: $49,900
• Current best ask: $50,000
• Initial Margin Rate: 1%
• Taker Fee: 0.05%

Position Margin = 1 × $49,950 × 0.01 = $499.50
Fee Reserve = 1 × $49,950 × 0.0005 × 2 = $49.95

Total Margin Required = $499.50 + $49.95 = $549.45

Partial Fill with Rest

Orders that partially execute and then rest still require complete fee coverage for the entire original order amount.

Example

Given:

• Order: Buy 2 BTC at $50,000
• 1 BTC executes immediately
• 1 BTC rests in the book
• Initial Margin Rate: 1%
• Maker Fee: 0.02%
• Taker Fee: 0.05%

Position Margin for Resting = 1 × $50,000 × 0.01 = $500
Maker Fee Reserve = 1 × $50,000 × 0.0002 = $10
Taker Fee Reserve = 1 × $50,000 × 0.0005 = $25

Total Remaining Margin Required = $500 + $10 + $25 = $535

Hidden Orders

Hidden orders and variants require margin for their specific maker fee type plus a visible taker fee.

Total Margin = Position Margin + (Order Size × Mark Price × Hidden Maker Fee) + (Order Size × Mark Price × Taker Fee)

Example

Given:

• Hidden Order: Sell 1 BTC at $50,000
• Initial Margin Rate: 1%
• Hidden Maker Fee: 0.04%
• Taker Fee: 0.05%

Position Margin = 1 × $50,000 × 0.01 = $500
Hidden Maker Fee Reserve = 1 × $50,000 × 0.0004 = $20
Taker Fee Reserve = 1 × $50,000 × 0.0005 = $25

Total Margin Required = $500 + $20 + $25 = $545