2.3 Trading Fees on Electra

2.3.1 Maker and Taker Fees on Electra

Important: Current vs. Upcoming Fees

• Right now, Electra charges the same flat fee of 0.04% for all trades, whether you're a Maker (adding liquidity) or a Taker (removing liquidity).

• Soon, Electra will introduce a dual fee structure that will apply different fees to Makers and Takers to better support market liquidity. This new model will distinguish between Maker Fees for users who provide liquidity and Taker Fees for those who withdraw it. By adopting this widely used industry practice, Electra aims to boost market liquidity and incentivize more active trading on the platform.

Upcoming Dual Fee Structure

Maker Fee (Liquidity Creators)

• Rate: 0.02%

• This fee applies when you place a limit order that does not execute immediately but adds to the order book, thereby increasing the platform's available liquidity. Important Note: When placing any order, a commission of 0.04% is signed upfront. However, if the order is executed as a Maker (by adding liquidity to the order book), the actual fee charged is 0.02%. This is due to the nature of decentralized exchanges, where the maximum possible fee is reserved in advance via smart contracts.

• Example: If you set a buy or sell price that does not yet match current market offers, your order becomes available to other participants and contributes to liquidity. You can see your order in the order book, where it awaits execution by other traders.

Taker Fee (Fee for Order Executors)

• Rate: 0.04%

• This fee applies when you place an order that executes immediately, removing liquidity from the order book. This applies to market orders or limit orders that immediately match with existing orders.

• Example: If you buy or sell at the current market price, your trade falls under the Taker category.

Examples of Fee Calculation:

• Maker: You place a limit order to buy BTC worth $10,000, adding liquidity. The fee will be $10,000 × 0.02% = $2.

• Taker: You buy BTC at the market price for the same amount. The fee will be $10,000 × 0.04% = $4.

Electra Fee Highlights:

• Fees are fixed and deducted automatically. All paid fees can be viewed in the "Order History" section.

• The split fee system incentivizes participants to add liquidity, making trading more stable and profitable for all.

• The transparent structure enables traders to plan expenses in advance.

2.3.2 Funding Fees on Electra

Funding Fees are applied on Electra to maintain balance between long and short positions in futures contracts. This mechanism helps align the platform's price with the underlying spot market, preventing significant deviations.

Key Features of Funding Fees:

• Daily Rate: On Electra, the rate is -0.01% of the position size, applied daily. A floating Funding Rate (FR), including positive values, will be introduced in the future, depending on market conditions and the balance between long and short positions.

How It Works:

• Funding Fees are exchanged between market participants (traders) holding long and short positions.

• • Example: If the Funding Fee is negative (-0.01%), traders with short positions pay this amount to traders with long positions. If the Funding Fee is positive (e.g., +0.01%), long positions pay this amount to short positions.

Fee Calculation Formula:

• Funding Fee = Position Size × 0.0001

• • Example: Position size $10,000. Funding Fee = $10,000 × 0.0001 = 1 USDT. A trader with a short position pays 1 USDT to the holder of a long position.

Key Features:

• Funding Fees on Electra are calculated dynamically and proportionally to the time a position is held. Unlike systems with fixed charge times (rollovers), there are no specific deduction or credit moments. Instead, the funding fee is charged continuously, with the total amount deducted when the position is closed.

• Funding Fees are not retained by the Electra platform; they are a redistribution mechanism between traders.

Why It Matters:

• Funding Fees prevent excessive deviations of futures prices from the underlying market, maintaining market efficiency. This is particularly important during periods of high volatility when supply-demand balance may be disrupted.

Electra ensures transparency in charges by providing users with precise details on accrued fees for open positions, as well as in order history.

2.3.3 Liquidation Fees on Electra

When a position is liquidated on Electra, a fee ranging from 0.5% to 2% of the liquidated position volume is charged.

• Fee Size: Depends on market conditions and trade volume.

• Usage: Covers operational costs and redistributes liquidated assets within the system.

2.3.4 Gas Fees for Smart Contracts

Gas fees on the Electra platform are only charged for deposits and withdrawals.

Key Points:

• Gas fees depend on the selected blockchain network (e.g., fees on BSC are significantly lower than on Ethereum).

• Your funds remain fully under your control, and you only pay for actual transfers between your wallet and the platform.

2.3.5 Margin Deposit/Withdrawal Fees Margin deposit and withdrawal fees are also tied to gas payments in the selected blockchain network.

Key Points:

• The fee amount depends on the current network load and transaction complexity.

• On platforms with low fees like BSC, transfer costs are significantly lower.

Example Fee Calculation on Electra:

• Depositing Funds: A trader pays a gas fee (e.g., $0.50 on BSC).

• Opening and Holding a Position: No additional gas costs, only standard trading fees and funding fees apply.

• Closing a Position: Only trading fees are charged, without extra gas costs.

• Withdrawing Funds: Gas fees depend on the chosen network (e.g., $1 on Ethereum or $0.20 on BSC).

Key Advantage of Electra: Traders pay for smart contract usage only during fund transfers, making trading economical and transparent.