How to calculate BigONE contract transaction fees

Calculating BigONE contract transaction fees involves determining the contract type, value, and trading volume, using specific formulas to calculate the base fee, and considering potential trading fee rebates based on VIP level.

Nov 26, 2024 at 02:44 am

How to Calculate BigONE Contract Transaction Fees

Overview

BigONE is a cryptocurrency exchange that offers a variety of contract trading services. Like other exchanges, BigONE charges transaction fees for these services. The transaction fee calculation varies depending on the contract type and trading volume. This comprehensive guide provides a step-by-step breakdown of how to calculate BigONE contract transaction fees.

Step 1: Determine the Contract Type

BigONE offers two types of contracts: perpetual contracts and futures contracts. Perpetual contracts have no expiry date, while futures contracts have a predetermined expiry date. The transaction fees for each type differ.

• Perpetual Contracts: The transaction fee for perpetual contracts is based on the contract value and the trading volume. The fee is calculated as a percentage of the contract value, with the percentage varying based on the trading volume.
• Futures Contracts: The transaction fee for futures contracts is a flat fee that is charged per contract traded. The fee does not vary based on the contract value or trading volume.

Step 2: Calculate the Contract Value

The contract value is the underlying asset's notional value multiplied by the contract size. To calculate the contract value, follow these steps:

For Perpetual Contracts:

1. Identify the underlying asset's current market price.
2. Multiply the market price by the contract size.

For Futures Contracts:

1. Identify the underlying asset's futures price for the desired expiry date.
2. Multiply the futures price by the contract size.

Step 3: Determine the Trading Volume

The trading volume is the total amount of contracts traded over a specific period, typically 24 hours. To determine the trading volume, consult the exchange's trading history or market data providers.

Step 4: Calculate the Transaction Fee

Once you have determined the contract type, contract value, and trading volume, you can calculate the transaction fee using the following formulas:

For Perpetual Contracts:

Transaction Fee = (Trading Volume Contract Value) Fee Rate

Where:

• Fee Rate = Variable percentage based on trading volume (provided by BigONE)

For Futures Contracts:

Transaction Fee = Flat Fee per Contract Traded

Where:

• Flat Fee = Specified fee per contract (provided by BigONE)

Step 5: Consider Trading Fee Rebates

BigONE offers trading fee rebates to its users based on their VIP level. VIP levels are determined by trading volume and account balance. Higher VIP levels qualify for lower trading fees. To determine the applicable trading fee rebate, refer to the BigONE VIP program guidelines.

Additional Considerations:

• BigONE charges both maker and taker fees.
• Transaction fees are typically paid in the underlying asset of the contract.
• The exchange may adjust trading fees from time to time. It is advisable to check the exchange's fee schedule for the most up-to-date information.