Understanding Perpetual Contracts
Perpetual contracts are innovative financial derivatives that combine features of futures contracts without requiring physical delivery of assets. As one of the most popular trading instruments, they allow traders to capitalize on market movements while maintaining open positions indefinitely. But how do the fees work? Let's break down the cost structure.
Daily Perpetual Contract Fees Explained
1. Trading Fees
Platforms charge fees for both opening and closing positions:
- Maker Fee: 0.02% (when adding liquidity to the order book)
- Taker Fee: 0.04% (when removing liquidity)
Fee Formula: (Contract Quantity × Face Value / Entry Price) × Fee Rate
Calculation Examples:
👉 Check real-time trading fees
BTC Example:
- Open 200 contracts at $5,000 (Face Value: $100)
- Close at $6,000 as maker
- Opening Fee:
(200×100/5000)×0.04% = 0.0016 BTC - Closing Fee:
(200×100/6000)×0.02% = 0.000667 BTC
EOS Example:
- Open 200 contracts at $2 (Face Value: $10)
- Close at $3 as taker
- Opening Fee:
(200×10/2)×0.04% = 0.4 EOS - Closing Fee:
(200×10/3)×0.04% = 0.266667 EOS
2. Delivery Fees (For Unclosed Positions)
Contracts that reach expiration without being closed incur delivery fees:
- BTC: 0.015% of position value
- Other Assets: 0.05% of position value
Perpetual Contract Fee Calculation Methods
Funding Rate Mechanism
Platforms like OKX use funding rates to maintain contract price alignment with spot prices:
Key Formulas:
- Settlement Amount = Position Notional Value × Funding Rate
- Notional Value = Mark Price × Contract Quantity
Funding rates combine:
- Interest Rate Component (Typically 0.01% per settlement period)
- Premium Index (Measures price divergence between contract and spot markets)
👉 See funding rate calculations in action
OKX Perpetual Contract Rules
1. Funding Schedule
- 24-hour settlement cycles (vs. BitMEX's 8-hour)
- Calculated as:
Funding Fee = Position Value × Funding Rate
2. Price Marking System
Uses weighted averages from multiple exchanges to:
- Smooth abnormal price fluctuations
- Reduce unnecessary liquidations
- Combine spot index price with basis difference
Why Traders Choose Perpetual Contracts
- No expiration dates = No forced rollovers
- Continuous position maintenance
- Better price discovery mechanisms
- Ideal for hedging and arbitrage strategies
FAQ Section
Q: How often are funding fees exchanged?
A: On OKX, every 24 hours (compared to BitMEX's 8-hour cycle).
Q: What's the advantage of perpetual contracts over futures?
A: They eliminate rollover costs and allow indefinite position holding.
Q: How are delivery fees calculated?
A: 0.015% for BTC and 0.05% for other assets on unsettled positions.
Q: What happens if I don't close my position before expiration?
A: The system auto-closes it and charges the delivery fee.
Q: Why do platforms charge maker/taker fees differently?
A: To incentivize liquidity provision (maker orders get lower fees).
Q: How is the premium index calculated?
A: It measures the difference between contract mid-price and spot index price.