How to calculate DigiFinex contract fees

Understanding DigiFinex's tiered fee structure ensures optimized trade management and profit maximization by clarifying the calculations for maker and taker fees, funding fees, margin fees, and liquidation fees.

Nov 27, 2024 at 12:56 pm

How to Calculate DigiFinex Contract Fees

Understanding DigiFinex Contract Fees

Understanding the various fees associated with DigiFinex contract trading is crucial for effective trade management. These fees can significantly impact your profitability, so it's essential to have a clear understanding of how they are calculated.

Types of DigiFinex Contract Fees

DigiFinex charges several types of fees for contract trading, including:

• Maker Fees: These fees are paid by traders who add liquidity to the order book by placing limit orders.
• Taker Fees: These fees are paid by traders who remove liquidity from the order book by executing market orders.
• Funding Fees: These fees are paid periodically to maintain the balance between long and short positions.
• Margin Fees: These fees are charged for borrowing funds to increase trading leverage.
• Liquidation Fees: These fees are incurred when a trader's position is liquidated due to insufficient margin.

Calculating DigiFinex Contract Fees

Step 1: Determine the Fee Structure

1. DigiFinex offers a tiered fee structure for both maker and taker fees. The fee rate is determined by your trading volume over the past 30 days.
2. For example, if your trading volume is less than 500 BTC, your maker fee will be 0.02% and your taker fee will be 0.06%.
3. You can view the complete fee schedule on the DigiFinex website.

Step 2: Calculate Maker Fees

1. Maker fees are calculated based on the amount of liquidity you add to the order book.
2. If you place a limit order that is not immediately executed, it will add liquidity to the order book and you will earn a maker fee based on your trading volume tier.
3. The maker fee is calculated as a percentage of the order value.

Step 3: Calculate Taker Fees

1. Taker fees are calculated based on the amount of liquidity you remove from the order book.
2. When you execute a market order, you are removing liquidity from the order book and you will be charged a taker fee.
3. The taker fee is calculated as a percentage of the order value.

Step 4: Calculate Funding Fees

1. Funding fees are calculated based on the funding rate. The funding rate is a periodic payment made between long and short positions.
2. If the funding rate is positive, long positions will pay short positions, and if the funding rate is negative, short positions will pay long positions.
3. The funding fee is calculated as a percentage of the contract value.

Step 5: Calculate Margin Fees

1. Margin fees are calculated based on the amount of funds you borrow to increase your trading leverage.
2. The margin fee rate is charged per day.
3. The margin fee is calculated as a percentage of the loan amount and the number of days the loan is outstanding.

Step 6: Calculate Liquidation Fees

1. Liquidation fees are incurred when your position is liquidated due to insufficient margin.
2. The liquidation fee is calculated as a percentage of the liquidation value.
3. Liquidation fees can vary depending on the contract type and the exchange.