Fee Calculation Explanation

On the Gate.io platform, contract trading fees are only incurred when opening, closing, or reducing positions. No fees are generated for unfilled or canceled orders. The fees are calculated based on the position value and are unrelated to leverage.

Image Source:Gate.io Official Website

Fee Deduction Rules

The fee is deducted from the position margin. The fee rates for placing orders and taking orders are different. Please refer to the specific rates.Tiered Fee Schedule.

Image source:Gate.io official website

Definition of Pending Orders and Market Orders

1. Maker Order: When you place a limit order or other types of orders, and the order enters the market depth waiting to be filled, it is called a “maker order”. Placing maker orders helps increase market liquidity, so the fees are relatively lower. Maker fees cannot be paid with points.
2. Taker: When your order is immediately matched with an order in the market, it is called a ‘Taker’ order. Taker orders reduce market liquidity, so the fees are higher. Taker fees can be offset by using points, and are calculated at a fixed rate of 0.075%. However, the actual rate may be discounted based on different circumstances, with a minimum of 0.0225%.

Contract handling fee calculation formula

Fee = Position value * (Maker/Taker fee rate) \
For example:

Market Order (Taker): User A trades 100 USDT worth of BTCUSDT contract at market price. If their VIP level is 10, the corresponding taker fee rate is 0.03%, so they need to pay a fee of 100 * 0.03% = 0.03 USDT.

Limit Order (Pending Order): User B trades BTCUSDT contract with a limit order value of 100 USDT. If their VIP level is 10, the corresponding pending order fee rate is 0.01%, so they can receive a fee reward of 100 * 0.01% = 0.01 USDT.

How to reduce contract fees

Reducing contract fees is an important consideration for investors when conducting contract transactions. Here are some suggestions to help investors reduce contract fees:

1. Optimize trading strategies

Reduce frequent trading: Frequent trading will increase transaction costs. Investors should reasonably control the trading frequency and avoid unnecessary trading according to market conditions and personal trading strategies.

Using limit orders: The transaction fee for market orders is usually higher, while the transaction fee for limit orders is relatively lower. Investors can consider using limit orders when opening or closing positions to reduce transaction costs.

2. Use discounts (fee cashback coupons) and commissions

Gate.io fee cashback voucher is used to refund part of the fees generated by users’ trading on the Gate.io platform. During the cashback voucher validity period, the platform will refund part of the trading fees generated for spot and contract trading based on the proportion and remaining amount of the cashback voucher. The refunded fees will be distributed to the spot account before 23:59:59 (UTC+0) on the next trading day. The fee cashback voucher needs to be manually activated to take effect, and only one fee cashback voucher can be activated at a time. The fee cashback voucher will expire and become invalid automatically, and the remaining balance cannot be used for cashback after expiration.

【APP Version】: On the top left corner of the APP homepage, click on the personal avatar, then go to Activities & Benefits -> Card Center. In the ‘All’ section or by selecting ‘Fee Rebate Coupons’ from the drop-down menu, you can view the available fee rebate coupons.

Enable rebate mode: The exchange provides a rebate system, which allows a portion of the transaction fees to be returned to investors. Investors can understand and enable the rebate mode to further reduce transaction fee expenses.

3. Improve user level

The exchange will provide different fee rates based on the user’s level. As the user’s level increases, the fee rate will decrease accordingly. Therefore, investors can improve their user level by accumulating trading experience and improving their trading skills, in order to enjoy lower fee rates.

Contract trading implements a tiered fee structure, with fees fluctuating based on the user’s VIP level. The maker fee is calculated based on the tiered fee rates, while the taker fee allows users to choose whether to use point cards for deduction. If there are point cards, they will be deducted at a fixed rate of 0.075%, with the lowest comprehensive fee rate being as low as 0.0225%; if there are no point cards, the fee is calculated based on the corresponding fee rate of the VIP level.

In summary, reducing contract fees requires investors to start from multiple aspects, including choosing the right exchange, optimizing trading strategies, using discounts and rebates, and improving user levels. Through these methods, investors can effectively reduce trading costs and improve investment efficiency.

Summary

Bitcoin contract transaction fees are one of the inevitable costs for investors in Bitcoin contract trading. Understanding and optimizing fees is of great significance for improving trading efficiency and reducing trading costs. By choosing the right trading platform, optimizing trading strategies, utilizing discounts and commission policies, improving trading efficiency, and paying attention to exchange promotions, investors can effectively reduce Bitcoin contract transaction fees and enhance profitability. However, it is important to note that while reducing fees, investors also need to consider the balance between trading costs and returns to ensure that the overall investment performance is not affected.

Disclaimer

This content is for reference only and does not constitute investment advice. Contract trading carries high risks and may result in capital loss. Please participate with caution based on your own risk tolerance. Trading involves risks, and investment should be cautious.