How to calculate the CoinW contract transaction fee

To calculate the CoinW contract transaction fee, multiply the trade amount by the appropriate fee rate (0.02% for makers, 0.05% for takers), considering leverage, multiplier, and any applicable discounts or promotions.

Nov 07, 2024 at 08:32 pm

How to Calculate the CoinW Contract Transaction Fee

Step 1: Understand the Fee Structure

CoinW uses a maker-taker fee model for its contract trading services, where makers (those who place limit orders that add liquidity to the market) pay lower fees than takers (those who place market orders that immediately execute against existing orders). The fee structure for contract trading is as follows:

• Makers: Pay a fee of 0.02% on their executed orders.
• Takers: Pay a fee of 0.05% on their executed orders.

Step 2: Determine the Transaction Type

Identify whether your transaction is a maker or taker order. If you place a limit order that adds liquidity to the market and is not executed immediately, you are considered a maker. If you place a market order that is immediately executed against an existing order on the market, you are considered a taker.

Step 3: Calculate the Fee Amount

To calculate the transaction fee, multiply the trade amount by the appropriate fee rate based on your transaction type. For example:

• Maker: Fee = Trade Amount * 0.0002
• Taker: Fee = Trade Amount * 0.0005

Step 4: Consider Leverage and Multiplier

The transaction fee is based on the underlying contract value, which is determined by the trade amount multiplied by the leverage and multiplier. For example, if you trade 100 USDT with a leverage of 10x and a multiplier of 1, the underlying contract value would be 1000 USDT.

Step 5: Check for Discounts and Promotions

CoinW may offer discounts and promotions that reduce the transaction fee. Check the platform's official website or announcements for any applicable promotions. Discounts may vary based on factors such as trading volume, VIP level, and special events.

Step 6: Example Calculation

To illustrate the calculation process, let's consider the following example:

• You place a taker order to buy 100 USDT worth of BTC perpetual contract.
• The applicable transaction fee is 0.05% for takers.

The fee calculation is as follows:

Fee = Trade Amount * Taker Fee Rate
Fee = 100 USDT * 0.0005
Fee = 0.05 USDT

Additional Fee Considerations:

• Withdrawal Fees: CoinW charges a withdrawal fee for transferring funds off the platform. The withdrawal fee varies depending on the cryptocurrency and the withdrawal method.
• Network Fees: Ethereum-based contracts may incur additional network fees due to the gas required to execute transactions on the Ethereum blockchain.
• Funding Fees: Perpetual contracts have funding fees that are automatically settled. You can check the funding rate for each contract on the CoinW trading platform.