How to understand the Bybit fee structure?

Understanding the Basics of Bybit’s Fee Model

Bybit operates on a dual fee structure involving maker and taker fees, which are standard across most cryptocurrency derivatives exchanges. These fees apply to all trading activities, especially on perpetual and futures contracts. The distinction between maker and taker roles is crucial to understanding how much you pay per trade. A maker is someone who places a limit order that adds liquidity to the order book. In contrast, a taker is someone who places a market order or any order that immediately matches with existing orders, thereby removing liquidity.

Bybit sets its base taker fee at 0.1% and the base maker fee at 0.02% for most contracts. These rates may vary slightly depending on the specific trading pair or contract type. Importantly, users who hold $BYBIT tokens in their accounts can opt to pay fees using this native token and receive a discount. This option is adjustable in the fee settings and can significantly reduce trading costs over time.

How to Check and Adjust Your Fee Settings

To view and modify your fee structure on Bybit, log in to your account and navigate to the 'Assets' section. From there, select 'Transaction Fee Rate'. This page displays your current maker and taker fee percentages. If you wish to pay fees using $BYBIT for a discount, go to 'Settings' > 'Fee Discount' and enable the option to use $BYBIT for fee payments. Once activated, your fees will be automatically deducted in $BYBIT at a reduced rate.

It’s important to note that the discount only applies if you have a sufficient balance of $BYBIT in your wallet. The platform will not partially deduct in $BYBIT and the rest in another asset. If your $BYBIT balance is insufficient, the system will default to charging fees in the settlement currency of the trade, such as USDT or USD.

Leverage and Its Impact on Fees

While leverage itself does not directly affect the maker or taker fee percentages, it influences the total fee amount due to the increased position size. For example, opening a $10,000 position at 10x leverage still incurs fees based on the full $10,000 notional value. A taker fee of 0.1% on this trade would result in a $10 fee. Higher leverage amplifies both potential gains and costs, including funding fees and trading fees.

Funding fees are separate from trading fees and are exchanged between long and short position holders every eight hours. These are not charged by Bybit but are paid peer-to-peer. The rate fluctuates based on market conditions and is displayed in real time on the trading interface. Monitoring the funding rate before entering a position can help avoid unexpected costs.

Fee Discounts Through VIP Programs

Bybit offers a VIP tier system based on a user’s 30-day trading volume and average perpetual contract holdings. This program provides reduced maker and taker fees for high-volume traders. To access VIP benefits, users must accumulate sufficient trading volume. The tiers range from VIP 1 to VIP 7, with each level offering progressively lower fees.

To check your current VIP status, go to 'User Center' > 'VIP Program'. Here, you’ll see your 30-day volume, current tier, and applicable fee rates. For instance, a VIP 3 user might enjoy a taker fee of 0.06% and a maker fee of -0.01%, meaning they receive a rebate for providing liquidity. Qualifying for higher tiers often requires trading millions of dollars in volume monthly, making it suitable for professional traders and institutions.

Calculating Real-World Trading Fees

Understanding how fees apply in actual trades is essential. Suppose you open a $5,000 USDT long position on the BTC/USDT perpetual contract as a taker. With a base taker fee of 0.1%, your entry fee is $5. If you later close the position as a maker using a limit order, you pay the maker fee of 0.02%, which amounts to $1. Your total trading cost is $6.

If you have enabled $BYBIT fee discounts and are on a standard tier, you may receive a 20% discount on fees paid in $BYBIT. In this case, the $5 taker fee would reduce to $4, and the $1 maker fee would drop to $0.80, saving you $1.20 overall. Always verify the currency of deduction in your transaction history to ensure the discount is being applied correctly.

Additional Fee Considerations

Beyond trading and funding fees, users should be aware of withdrawal fees. Bybit charges network fees for withdrawing cryptocurrencies, which vary by blockchain. For example, withdrawing USDT via the TRC-20 network typically costs $1, while ERC-20 withdrawals may cost more due to Ethereum gas fees. These fees are not profit for Bybit but are passed through to cover blockchain transaction costs.

Another often-overlooked cost is liquidation fees. If your position gets liquidated, Bybit charges a fee equal to a percentage of your position, typically 0.5% to 1%, depending on the contract. This is separate from the insurance clearout process. Using stop-loss orders and appropriate leverage can help avoid such charges.

Does holding $BYBIT reduce both maker and taker fees?Yes, enabling fee payment in $BYBIT reduces both maker and taker fees across all applicable trades. The discount percentage depends on your account tier and the current discount rate set by Bybit. You must have sufficient $BYBIT in your wallet for the deduction to occur.

Are there any hidden fees on Bybit I should be aware of?Bybit does not charge hidden fees. All costs are transparent and listed in the fee schedule under the 'Help Center.' The main fees include trading fees, funding fees, withdrawal fees, and liquidation fees. Always review the fee section before trading.

How often are funding fees charged on Bybit?Funding fees are charged every eight hours, specifically at 00:00 UTC, 08:00 UTC, and 16:00 UTC. The rate is determined by the difference between perpetual contract prices and the underlying spot index. You only pay funding fees if you hold a position at the settlement timestamp.

Can I switch back to paying fees in USDT after using $BYBIT?Yes, you can toggle between paying fees in $BYBIT or the settlement currency anytime in the 'Fee Discount' settings. Disabling the $BYBIT payment option will cause all future fees to be deducted in the trade’s base currency, such as USDT or BTC.