How to calculate Crypto.com contract fees

When placing a maker order on Crypto.com for a BTC/USD contract with a contract size of 1 BTC, contract price of $30,000, and a trading volume discount of 20%, the contract fee would be $36.

Nov 23, 2024 at 11:34 am

How to Calculate Crypto.com Contract Fees

Crypto.com is a popular cryptocurrency exchange that offers a variety of services, including spot trading, derivatives trading, and staking. When trading derivatives on Crypto.com, it is important to understand the fees involved. This guide will provide a step-by-step guide on how to calculate Crypto.com contract fees.

Step 1: Understand the Contract Fee Structure

Crypto.com contract fees are based on a maker-taker model. This means that the fees you pay will depend on whether you are placing a maker order or a taker order.

• Maker orders are orders that add liquidity to the market. When you place a maker order, you are essentially offering to buy or sell a certain amount of cryptocurrency at a specific price. If your order is matched with an opposite order, you will receive a rebate on the fees.
• Taker orders are orders that remove liquidity from the market. When you place a taker order, you are essentially agreeing to buy or sell a certain amount of cryptocurrency at the current market price. You will not receive a rebate on the fees for taker orders.

Step 2: Determine Your Maker/Taker Fee

Your maker/taker fee will depend on your trading volume. The higher your trading volume, the lower your fees will be. Crypto.com offers four tiers of fees:

• Bronze: 0.036% maker fee / 0.048% taker fee
• Silver: 0.032% maker fee / 0.044% taker fee
• Gold: 0.028% maker fee / 0.040% taker fee
• Platinum: 0.024% maker fee / 0.036% taker fee

To determine your maker/taker fee, you can use the following formula:

Maker/Taker Fee = Base Fee * (1 - Trading Volume Discount)

Where:

• Base Fee is the fee that you would pay if you were not eligible for any discounts.
• Trading Volume Discount is the discount that you receive for your trading volume.

Step 3: Calculate the Contract Fee

Once you know your maker/taker fee, you can calculate the contract fee. The contract fee is based on the following formula:

Contract Fee = (Contract Size * Contract Price) * Maker/Taker Fee

Where:

• Contract Size is the number of units in the contract.
• Contract Price is the price of the contract.
• Maker/Taker Fee is the fee that you will pay for the order.

Step 4: Example

Let's say that you are placing a maker order for a BTC/USD contract. The contract size is 1 BTC, and the contract price is $30,000. You are eligible for a 20% trading volume discount.

Using the formula above, you can calculate the contract fee as follows:

Contract Fee = (1 BTC * $30,000) * 0.036%
Contract Fee = $36

Therefore, the contract fee for this order would be $36.

Step 5: Additional Considerations

In addition to the contract fee, there are a few other factors that can affect the total cost of trading derivatives on Crypto.com. These factors include:

• Funding rate: The funding rate is a periodic payment that is made by traders to keep the perpetual contract price aligned with the spot price. The funding rate can be positive or negative. If the funding rate is positive, then longs will pay shorts. If the funding rate is negative, then shorts will pay longs.
• Insurance premium: The insurance premium is a fee that is paid by traders to protect against the risk of liquidation. The insurance premium is based on the volatility of the contract.
• Spread: The spread is the difference between the bid price and the ask price. The spread can vary depending on the liquidity of the contract.

It is important to consider all of these factors when calculating the total cost of trading derivatives on Crypto.com.