What is the BigONE contract handling fee?

Traders engaging in derivatives trading on BigONE are subject to a contract handling fee to support platform stability and operational costs, such as risk management and liquidity provision.

Dec 06, 2024 at 11:00 pm

What is the BigONE Contract Handling Fee?

BigONE, a prominent cryptocurrency exchange, has implemented a contract handling fee for its derivatives trading platform. This fee, charged to traders who engage in contract trading on the exchange, serves to maintain the platform's stability and ensure the smooth functioning of its services.

Key Aspects of the BigONE Contract Handling Fee:

• Fee Structure: The contract handling fee on BigONE is a percentage-based charge levied on both makers and takers. The fee rate varies depending on the specific contract being traded and its trading volume.
• Fee Purpose: The revenue generated from the contract handling fee is primarily utilized to cover the operational costs associated with maintaining and enhancing the derivatives trading platform on BigONE. This includes expenses related to risk management, liquidity provision, and system upgrades.
• Fee Impact on Traders: While the contract handling fee represents an additional cost for traders, it is important to note that it is a common practice among cryptocurrency exchanges offering derivatives trading services. The fees charged by BigONE are generally competitive when compared to other reputable exchanges in the industry.

Steps Involved in Calculating the Contract Handling Fee on BigONE:

1. Identify the Contract: Determine the specific contract being traded, such as the BTC/USDT perpetual contract or the ETH/USD quarterly contract. Each contract has its own unique fee rate.
2. Calculate the Trading Volume: Determine the total trading volume for the specific contract during the relevant period. The trading volume is typically measured in the underlying asset, such as the number of Bitcoin or Ethereum contracts traded.
3. Apply the Fee Rate: Multiply the trading volume by the applicable fee rate for the specific contract. The fee rate is expressed as a percentage, such as 0.02%.
4. Determine the Contract Handling Fee: The result of the multiplication in Step 3 represents the contract handling fee incurred by the trader. This fee is typically deducted from the trader's account balance when the contract is closed or settled.

Additional Considerations:

• Trading Fee Discounts: BigONE offers trading fee discounts to traders who hold a certain amount of the exchange's native token, the BigONE Token (BFT). The discount percentage varies depending on the BFT balance held.
• Market Making Incentives: BigONE provides incentives to market makers who contribute to the liquidity of the derivatives markets on the platform. These incentives can include reduced contract handling fees and other benefits.
• Fee Adjustments: BigONE reserves the right to adjust the contract handling fees from time to time. Any changes to the fee structure are typically announced in advance to provide traders with sufficient notice.