Options fees have two components: the Transaction Fee and the Exercise Fee.
Transaction Fee
A transaction fee will be charged after opening or closing a position. The transaction fee for each transaction is calculated based on the underlying assetâs Spot Index price at the time of the order completion (capped at 10% of the optionâs value).
- Transaction fee rate: 0.03%
Formula:
Transaction Fee = Minimum (Transaction Fee Rate * Index Price * Contract Unit, 10% * Option Traded Price) * Option Traded Size
Example:
User A buys the following Options:
- Type: ETHUSDT Call Option
- Underlying: ETH
- Strike Price: 2,000 USDT
- Quantity: 3 contracts
- Expiration Date: April 30, 2022
- Premium: 1,000 USDT
User A places a Limit Buy Order for 3 ETHUSDT Options contracts with a 1,000 USDT premium. The order was executed when the ETHUSDT Spot Index price hits 2,000 USDT.
In this case, Transaction Fee = Minimum (0.03% * 2,000, 10% * 1,000) * 3 = 1.8 USDT
Exercise Fee
Exercise fees are charged whenever the Options is exercised. The exercise fee for each transaction is calculated based on the settlement price at the time of the order completion (capped at 10% of the optionâs value).
Exercise fee rate: 0.015%
Formula:
Exercise Fee = Minimum [Exercise Fee Rate * Settlement Price * Contract Unit, 10% * Option Value] * Position Size
Example:
Letâs revisit User Aâs case:
- Type: ETHUSDT Call Option
- Underlying: ETH
- Strike Price: 2,000 USDT
- Quantity: 3 contracts
- Expiration Date: April 30, 2022
- Settlement Price: 2,200 USDT
- Premium: 2,000 USDT
In this case, Exercise Fee = Minimum [0.015% * 2,200, 10% * (2,200 â 2,000)] * 3 = 0.99 USDT