There are three types of fees that can be incurred when Margin trading: Spot trading fee, interest and liquidation fee.
Spot Trading Fee
Trading fees are charged when buying or selling leveraged positions on the Spot market. The fee structure is the same as for Spot trading.
Formula
Trading Fee = Filled Order Quantity × Spot Trading Fee Rate
Please note that makers and takers who are non-VIP users pay a trading fee of 0.1% in the Spot market. The higher your tier, the lower the fee rates you're entitled to.
To learn more about Spot trading fees, please refer to the following articles:
Interest
The interest incurred while Margin Trading is generated on an hourly basis. You can repay the loan at any time and pay interest for the actual borrowing hours. Please note that an increment of one hour will be counted as one hour.
Formula
Interest = Amount to Borrow × Daily Interest Rate / 24 × Hours
Example
Suppose Trader A borrows 10,000 USDT at 8:05 AM UTC and repays at 10AM UTC.
Daily Interest Rate: 0.02%
Hourly Interest Rate: 0.02% / 24
Trader A needs to pay interest of 0.167 USDT based on the following calculation:
Interest = 10,000 × 0.02% / 24 × 2
Please note that interest rates vary daily. In addition, each VIP level will enjoy different daily and yearly interest rates. You can refer to the daily interest rate, yearly interest rate and maximum amount to borrow for each coin here.
Notes:
— Interest accrues on an hourly basis. The system automatically calculates and charges the borrowing fee five minutes past each hour (e.g., 08:05 UTC, 09:05 UTC), based on the applicable borrowing rate and the outstanding borrowed amount at that time.
— Accrued interest from Spot Margin trading can be repaid manually. Alternatively, auto-repayment can be enabled via API. Auto-repayment will be executed only if there is a sufficient positive balance of the borrowed asset in the UTA account.
— Long term outstanding borrowings or liabilities in the UTA account may increase the overall risk level of the UTA account.
Liquidation Fee
When liquidation occurs in Spot Margin Trading, liquidation fees will be charged and injected into the margin insurance fund pool.
In an event where your account goes bankrupt, i.e., when you are liquidated, you have insufficient margin assets in your Unified Trading Account to repay the debt. The platform will use the margin insurance fund to cover your outstanding balance.
Formula
Liquidation Fee = Liquidated Assets × Liquidation Fee Rate
Liquidated Assets = Liquidated Quantity / (1 + Liquidation Fee Rate)
Example
Liquidation has been triggered and the liquidated value is 93.8069873440 USDT.
The calculation is as follows:
Liquidated asset = 93.8069873440 / (1 + 0.02) = 91.96763465 USDT
Liquidation fee = 91.96763465 x 0.02 = 1.8393526930 USDT