How to calculate the KuCoin contract transaction fee

Determining the exact transaction fees on KuCoin's contract trading platform requires considering factors such as contract type, VIP level, and trade size.

Nov 13, 2024 at 04:59 am

Calculating KuCoin Contract Transaction Fees

Understanding and calculating contract transaction fees on KuCoin is crucial for effective trading and managing your financial resources. This article provides a comprehensive guide to help you calculate these fees accurately.

1. Identify the Contract Fee Structure

KuCoin adopts a simple and transparent fee structure for its contract trading platform. The fees are determined based on the following elements:

• Maker Fee: Charged to users who place orders that add liquidity to the order book by creating new bids or asks.
• Taker Fee: Charged to users who place orders that immediately execute against existing orders in the order book, removing liquidity.
• Fixed Fee: A flat fee charged for certain contract types, regardless of trade size or maker/taker status.

2. Determine the Fee Rate

KuCoin offers different fee rates based on the contract type and VIP level of the user. The fee rates vary depending on the following factors:

• Contract Type: Different types of contracts, such as Perpetual Contracts, Futures Contracts, and Mini Futures Contracts, have varying fee rates.
• VIP Level: Users with higher VIP levels enjoy lower fee rates as a loyalty bonus.

To find the fee rate for a specific contract, you can refer to KuCoin's fee schedule or check the contract information page for details.

3. Calculate the Transaction Fee

Once you know the fee rate, you can calculate the transaction fee based on the following formula:

Transaction Fee = Trade Size × Fee Rate

• Trade Size: The notional value of the contract traded, calculated by multiplying the contract price by the number of contracts traded.
• Fee Rate: The maker fee or taker fee rate, as applicable.

For example, suppose you want to buy 1 BTC Perpetual Contract with a price of $20,000 and a maker fee rate of 0.02%.

• Trade Size: $20,000 (Contract Price) × 1 (Number of Contracts) = $20,000
• Transaction Fee: $20,000 × 0.0002 = $4

4. Consider Additional Fees

In addition to the core transaction fee, you may encounter other fees when trading contracts on KuCoin:

• Funding Fee: A periodic fee charged to adjust the price of the Perpetual Contract to match the spot market price.
• Margin Interest Fee: A charge incurred when using leverage to trade contracts.
• Overnight Storage Fee: A daily fee for holding overnight positions in some futures contracts.

5. Optimize Fee Savings

To minimize transaction fees, you can consider the following strategies:

• Use Maker Orders: Placing maker orders adds liquidity to the order book, resulting in a lower maker fee.
• Reach Higher VIP Levels: As you trade more and increase your trading volume, you can unlock higher VIP levels with reduced fee rates.
• Utilize KuCoin Tokens (KCS): Holding KCS in your account grants you a discounted fee rate, with discounts increasing with higher KCS holdings.