How to calculate Crypto.com contract transaction fees

Crypto.com's contract transaction fees consist of maker fees for liquidity creation, taker fees for liquidity consumption, funding fees for holding profitable positions, and settlement fees for contract maturity.

Dec 06, 2024 at 06:06 pm

Calculating Crypto.com Contract Transaction Fees: A Comprehensive Guide

Crypto.com is a renowned cryptocurrency exchange that provides a diverse range of trading options, including contract trading. Understanding the fee structure associated with contract transactions is crucial for informed decision-making and maximizing profitability. This article will delve into the intricacies of Crypto.com contract transaction fees, providing a step-by-step guide to calculating these fees effectively.

Step 1: Identifying Fee Components

Crypto.com contract transaction fees consist of the following components:

• Maker Fee: Charged to traders who create liquidity by placing orders that don't immediately match against existing orders on the exchange.
• Taker Fee: Charged to traders who consume liquidity by matching existing orders on the exchange.
• Funding Fee: Charged to traders holding futures contracts that are in profit.
• Settlement Fee: Charged when a futures contract matures and is settled.

Step 2: Fee Structure

Crypto.com's contract transaction fee structure varies based on the type of contract being traded and the trading level of the user.

• Maker Fee: Typically ranges from 0.001% to 0.020%.
• Taker Fee: Usually slightly higher than the maker fee, ranging from 0.0015% to 0.040%.
• Funding Fee: Varies depending on the underlying asset and market conditions.
• Settlement Fee: Usually a small percentage of the contract's notional value.

Step 3: Calculating Maker Fees

Maker fees are calculated when an order is placed at a price that is not immediately matched against an existing order on the exchange. The fee is computed as a percentage of the order's notional value.

Formula:

Maker Fee = (Notional Value * Maker Fee Rate)

Step 4: Calculating Taker Fees

Taker fees are calculated when an order is placed at a price that immediately matches against an existing order on the exchange. The fee is deducted from the profit when the order is closed.

Formula:

Taker Fee = (Profit * Taker Fee Rate)

Step 5: Calculating Funding Fees

Funding fees are charged on a periodic basis to traders holding futures contracts that are in profit. The fee rate is determined by the underlying asset and market conditions and is usually positive for long positions and negative for short positions.

Formula:

Funding Fee = (Position Size * Funding Fee Rate * Time Held)

Step 6: Calculating Settlement Fees

Settlement fees are incurred when a futures contract matures and is settled. The fee is a small percentage of the contract's notional value and is typically billed to the trader who closed the contract.

Formula:

Settlement Fee = (Notional Value * Settlement Fee Rate)

Step 7: Tiered Fee Structure

Crypto.com employs a tiered fee structure based on the user's trading volume. Higher trading volume results in reduced fees. The following table outlines the fee tiers and their associated maker and taker fees:

Step 8: Fee Reduction

Traders can reduce Crypto.com contract transaction fees by:

• Increasing their trading volume to qualify for higher fee tiers.
• Using CRO tokens to pay for fees, which offers up to 50% in fee discounts.
• Participating in promotions and discounts offered by Crypto.com.