How much is the Huobi contract fee

By understanding the fee structure of Huobi's contract trading options, traders can optimize their profitability and tailor their trading strategies accordingly.

Nov 22, 2024 at 10:51 am

Huobi Contract Fee Structure: A Comprehensive Guide

Huobi, a leading cryptocurrency exchange, offers a range of contract trading options to its users. Understanding the fee structure associated with contract trading on Huobi is crucial for traders to optimize their profitability. This article provides a comprehensive overview of Huobi's contract fees, answering common questions and outlining the various components that make up the overall fee structure.

1. Trading Fees

• Maker Fees: Makers, who add liquidity to the market by placing limit orders, receive a rebate on their trading fees. The maker fee for perpetual contracts is 0.02% and for futures contracts, it is 0.01%.
• Taker Fees: Takers, who remove liquidity from the market by executing market orders, pay a slightly higher fee. The taker fee for perpetual contracts is 0.03% and for futures contracts, it is 0.02%.

2. Funding Fees

• Perpetual contracts employ a funding fee mechanism to maintain price parity with their underlying assets. The funding rate, which can be positive or negative, is charged every 8 hours. If the funding rate is positive, long positions pay short positions, and vice versa. The funding rate for Huobi's perpetual contracts is calculated based on the interest rate differential between the contract and its underlying asset, as well as market supply and demand.

3. Margin Fees

• Margin trading allows traders to leverage their position, effectively increasing their potential profits and losses. When using margin, traders borrow funds from Huobi and pay an interest fee on the borrowed amount. The margin fee for perpetual contracts is 0.05% per day, while the fee for futures contracts varies depending on the contract period.

4. Insurance Fund Fees

• The insurance fund protects against potential losses incurred by traders in the event of liquidation. A small percentage of trading fees (0.02%) is allocated to the insurance fund. When closing a position, traders contribute to the insurance fund if they have realized a profit. The fees charged are used to compensate traders who suffer losses due to liquidations.

5. Deposit and Withdrawal Fees

• Huobi charges a deposit fee for some cryptocurrencies, while deposits made in Huobi Token (HT) are typically fee-free. Withdrawal fees vary depending on the cryptocurrency being withdrawn. It is recommended to check the latest fee schedule on the Huobi website.

6. Other Fees

• Settlement Fee: When a futures contract matures, traders are charged a settlement fee for liquidating their positions. The settlement fee is determined based on the contract's underlying asset and trading volume.
• Referral Fees: Traders who refer new users to Huobi can earn referral fees based on their referred users' trading volume. The referral rate is tiered, with higher rates for higher trading volumes.