Navigating Deribit’s Fee Structure: How Much Does It Cost to Trade?

Understanding Deribit’s Fee Structure

What are the trading fees on Deribit?

Deribit, a popular cryptocurrency derivatives exchange, employs a transparent fee structure to facilitate trading activities on its platform. The exchange charges both trading and settlement fees, which vary based on various factors.

Trading Fees

Trading fees on Deribit are based on a maker-taker model, where makers add liquidity to the order book, while takers remove liquidity.

– Makers: For makers, who provide liquidity to the platform, Deribit offers a rebate. The maker fee is as low as 0.02% for Bitcoin futures and options, while for altcoin futures, it is 0.05%.
– Takers: On the other hand, takers pay a fee for using the liquidity provided by makers. The taker fee starts at 0.05% for Bitcoin futures and options, and for altcoin futures, it is 0.075%.

It’s worth noting that these fees can vary slightly based on the contract type and trading volume.

Settlement Fees

Deribit charges settlement fees for options contracts that are either settled or expire. These fees are applied based on a percentage of the underlying asset’s notional value and vary depending on the currency.

For Bitcoin options, the settlement fee is 0.025%, while for Ethereum options, it stands at 0.05%.

FAQs

What are the additional fees on Deribit?

Apart from trading and settlement fees, Deribit imposes a few additional fees:

1. Deposit Fees: Deribit does not charge any fees for deposits.

2. Withdrawal Fees: Withdrawal fees vary based on the cryptocurrency being withdrawn. For Bitcoin, the fee is 0.0005 BTC, while for Ethereum, it is 0.01 ETH.

How can I reduce my trading fees on Deribit?

Deribit offers a fee discount program called the “DeriBETA” program. By participating in the program, users can receive a discount on their trading fees. The discount is tiered and depends on the user’s trading volume.

Are there any fee reductions for high-volume traders?

Yes, Deribit provides fee reductions for high-volume traders through its VIP fee program. By having a significant trading volume, users can qualify for lower trading fees. The details and requirements for this program can be found on Deribit’s official website.

Conclusion

Deribit’s fee structure aims to provide a fair and transparent trading environment for its users. Understanding the trading and settlement fees, as well as the additional fees and discount programs available, can help traders make informed decisions while trading on the platform.