How to calculate the ProBit Global contract handling fee?

ProBit Global contract handling fee varies based on trading volume and order type, with makers receiving lower fees than takers, and higher-volume traders enjoying reduced rates.

Nov 23, 2024 at 11:45 pm

How to Calculate the ProBit Global Contract Handling Fee

Step 1: Understanding the ProBit Global Contract Handling Fee

The ProBit Global contract handling fee is a charge levied on all contract trades executed on the ProBit Global exchange. It compensates the exchange for providing the infrastructure and services necessary to facilitate these trades. The handling fee is calculated based on a percentage of the trade value and is intended to cover the costs associated with maintaining the exchange's platform, providing liquidity, and offering customer support.

ProBit Global's contract handling fee is structured into two components: a maker fee and a taker fee. Maker orders are those that add liquidity to the order book by placing new orders or by increasing the size of existing orders. Taker orders, on the other hand, are those that remove liquidity from the order book by executing against existing orders or by decreasing the size of existing orders.

Step 2: Determining the Maker and Taker Fees

The ProBit Global contract handling fee is tiered based on the trader's 30-day trading volume. The following table summarizes the maker and taker fees for each tier:

Step 3: Calculating the Contract Handling Fee

To calculate the contract handling fee, traders should apply the appropriate maker or taker fee to the value of their trade. For example, a VIP 1 trader placing a maker order with a value of $10,000 would incur a fee of $2 (0.02% of $10,000). Similarly, a VIP 5 trader placing a taker order with a value of $50,000 would incur a fee of $5 (0.01% of $50,000).

Step 4: Additional Considerations

In addition to the maker and taker fees, ProBit Global also charges a funding fee on all perpetual contracts. The funding fee is a periodic payment made between traders on opposite sides of a contract trade. The funding fee is designed to encourage traders to maintain balanced positions and to prevent excessive market imbalances. The funding fee is calculated and paid out every 8 hours based on the funding rate, which is determined by the difference between the contract price and the index price.

Detailed Explanation of Steps:

Step 1: Understanding the ProBit Global Contract Handling Fee

The ProBit Global contract handling fee is a comprehensive charge that encompasses the various costs associated with providing a reliable and efficient contract trading platform. These costs include:

1. Infrastructure and Technology: ProBit Global invests substantial resources in maintaining its robust trading platform, which includes high-performance servers, secure data centers, and advanced trading technology. These investments ensure the smooth execution of trades, minimizing latency and downtime.
2. Liquidity Provision: ProBit Global actively promotes liquidity in its contract markets by incentivizing market makers and providing deep order books. This ensures that traders can execute their trades swiftly and efficiently at competitive prices.
3. Customer Support: ProBit Global offers dedicated customer support to assist traders with any queries or issues they may encounter. The exchange's support team is available 24/7 via various channels, including live chat, email, and social media.

Step 2: Determining the Maker and Taker Fees

ProBit Global's tiered fee structure rewards traders based on their trading volume. The higher the trading volume, the lower the maker and taker fees. This structure encourages active trading and contributes to the liquidity of the platform. The five tiers are as follows:

• VIP 1: This tier is for traders with a 30-day trading volume of $0 to $250,000. The maker fee is 0.02%, and the taker fee is 0.03%.
• VIP 2: This tier is for traders with a 30-day trading volume of $250,000 to $1,000,000. The maker fee is 0.015%, and the taker fee is 0.025%.
• VIP 3: This tier is for traders with a 30-day trading volume of $1,000,000 to $5,000,000. The maker fee is 0.01%, and the taker fee is 0.02%.
• VIP 4: This tier is for traders with a 30-day trading volume of $5,000,000 to $25,000,000. The maker fee is 0.005%, and the taker fee is 0.015%.
• VIP 5: This tier is for traders with a 30-day trading volume of $25,000,000 or more. The maker fee is 0.0025%, and the taker fee is 0.01%.

Step 3: Calculating the Contract Handling Fee

Calculating the contract handling fee is straightforward. Traders should multiply the contract value by the applicable maker or taker fee based on their VIP tier. For instance:

• A VIP 1 trader placing a maker order worth $10,000 would incur a fee of $0.02 x $10,000 = $2.
• A VIP 5 trader placing a taker order worth $50,000 would incur a fee of $0.01 x $50,000 = $5.

Step 4: Additional Considerations

In addition to the contract handling fee, ProBit Global also charges a funding fee on perpetual contracts. This fee is calculated and paid out every 8 hours and is designed to maintain market balance and incentivize traders to hold positions in proportion to the market sentiment. The funding rate is determined by the difference between the contract price and the index price. If the contract price is higher than the index price, long positions pay a fee to short positions, and vice versa.