What are the fees for trading contracts on KuCoin?

Fees for Trading Contracts on KuCoin

1. KuCoin charges both taker and maker fees for futures trading, with rates varying based on the user’s 30-day trading volume and VIP level. Standard taker fees are set at 0.06%, while maker fees are typically 0.02%. These base rates apply to users without any fee discounts or tier upgrades.

2. High-volume traders can benefit from reduced fees through KuCoin’s VIP program. As trading volume increases over a rolling 30-day period, users move into higher VIP tiers, which offer lower taker and maker fees. The highest tiers may see taker fees as low as 0.02% and maker fees reaching -0.01%, effectively earning rebates on each trade.

3. Fee discounts are also available for users who hold and use KuCoin Token (KCS) to pay for trading fees. By selecting KCS as the fee payment method, traders can receive up to a 20% discount on both taker and maker fees. This adds an extra layer of cost efficiency for active participants in the KuCoin ecosystem.

4. Funding rates apply to perpetual contracts and are exchanged between long and short position holders every eight hours. While not a direct trading fee, funding rates impact overall trading costs. Positive funding rates mean longs pay shorts, and negative rates mean shorts pay longs. Traders must monitor these rates to manage their position expenses effectively.

5. Withdrawal fees for cryptocurrencies used in contract trading vary by blockchain network. KuCoin sets withdrawal fees based on network congestion and transaction size. These fees are separate from trading fees but are essential to consider when calculating total trading-related expenses.

How Volume-Based Discounts Work

1. KuCoin evaluates a trader’s total futures trading volume over the past 30 days to determine their eligibility for fee reductions. This includes both buy and sell orders, regardless of direction. The higher the cumulative volume, the greater the discount applied to future trades.

2. There are multiple VIP levels, each with specific volume thresholds. For example, users exceeding $5 million in monthly volume may qualify for VIP 3, which offers significantly reduced taker and maker fees. Each tier is clearly defined on KuCoin’s fee schedule page.

3. Users can track their current VIP status and 30-day volume directly in their account dashboard. This real-time tracking allows traders to adjust their strategies to reach the next tier or maintain their current fee benefits.

4. The volume calculation includes all futures contracts traded on the platform, whether isolated or cross-margin positions. This comprehensive approach ensures that all futures activity contributes toward fee reductions.

5. Fee rebates in the form of negative maker fees are possible at the highest tiers. This means liquidity providers are paid to place limit orders, incentivizing market depth and tighter spreads across popular trading pairs.

Using KCS to Reduce Fees

1. Traders have the option to pay futures trading fees using KCS, KuCoin’s native token. When enabled, this feature automatically applies a discount of up to 20% on both taker and maker fees, depending on the user’s current settings and holdings.

2. To activate KCS fee payments, users must hold a sufficient balance of KCS in their main account. The system deducts the required amount at the time of each trade settlement, ensuring uninterrupted access to the discount as long as funds are available.

3. The discount percentage may vary based on platform announcements or promotional periods. KuCoin occasionally runs campaigns that increase the KCS discount temporarily, offering additional savings during high-activity periods.

4. Combining KCS fee payments with VIP tier benefits results in compounded savings. A high-tier user paying with KCS can achieve the lowest possible effective fee rate, making this strategy ideal for professional traders and institutions.

5. Holding KCS not only reduces trading costs but also grants access to other platform benefits, such as participation in token sales and governance initiatives. This multi-functional utility enhances the value proposition for active traders on KuCoin.

Additional Cost Considerations

1. Liquidation fees apply when a trader’s position is forcibly closed due to insufficient margin. KuCoin charges a liquidation fee, typically equivalent to 0.5% of the position value, which is deducted from the remaining collateral.

2. Insurance fund contributions occur during auto-deleveraging events, where profitable counterparties may have portions of their gains used to cover losses from undercollateralized positions. While rare, this represents a potential hidden cost for aggressive leveraged trading.

3. Market data and API usage are free on KuCoin, but premium data feeds or advanced algorithmic tools may require third-party subscriptions. These indirect costs should be factored into automated trading operations.

4. Slippage is not a formal fee but affects execution quality, especially for large orders in low-liquidity markets. Traders should use limit orders and monitor order book depth to minimize unintended price deviations.

5. Deposit fees for fiat or crypto transfers vary by method. While most cryptocurrency deposits are free, certain networks or gateways may impose charges. Understanding these nuances helps avoid unexpected costs before initiating contract trades.

Common Questions

What is the difference between maker and taker fees?KuCoin charges maker fees for limit orders that add liquidity to the market and taker fees for market orders that remove liquidity. Makers usually pay lower fees, sometimes receiving rebates, while takers incur higher costs due to immediate execution.

Can I change my fee payment currency after placing a trade?No, the fee payment method must be selected before trading. Once set, it applies to all subsequent transactions until changed manually. Users should confirm their preferred payment currency in settings prior to entering positions.

Are there any hidden fees in KuCoin Futures?All standard fees are disclosed on KuCoin’s official fee schedule. However, costs like funding payments, liquidation deductions, and slippage are not listed as direct fees but impact overall profitability and should be monitored closely.

How often are funding rates charged?Funding rates on KuCoin Futures are settled every eight hours, specifically at 00:00 UTC, 08:00 UTC, and 16:00 UTC. Positions held at these times will either pay or receive funding based on the prevailing rate.