Transaction fees are a standard part of trading on a decentralized exchange. These fees help to cover the costs of maintaining the platform and ensure that it remains operational. The transaction fee rates on TokenBot DEX are as follows:
- Maker fee: 0.02%
- Taker fee: 0.07%
In order to understand the transaction fee structure on TokenBot DEX, it's important to understand the difference between Maker and Taker orders.
When you place a Maker order, you're adding liquidity to the order book. This means that you're entering an order price (either higher or lower than the current market price) and rather than being filled immediately, your order will go onto the order book with the other orders. Your order will stay on the order book until another user takes the initiative to fill the order.
When you place a Taker order, you're taking liquidity from the order book. This means that you're taking the initiative to fill your order by trading with an existing order on the order book. Your order trades immediately by filling an existing order with a matching price.
Transaction fees on TokenBot DEX are calculated based on the nominal value of the trade and the transaction fee rate. The formula for calculating transaction fees is as follows:
Transaction fee = Nominal value × Transaction fee rate
The nominal value of a trade is calculated as:
Nominal value = Number of futures contracts × Transaction price
For example, if you were buying 1 BTC of BTCUSDT futures using a Market Order at a price of 49,000 USDT, the nominal value of the trade would be 49,000. As a Taker, you would pay a transaction fee of 49,000 × 0.07% = 34.3 USDT.
Once the price goes up, you can place a Maker sell order. If you were selling 1 BTC of BTCUSDT futures at 49,500 USDT, the nominal value of the trade would be 49,500. As a Maker, you would pay a transaction fee of 49,500 × 0.02% = 9.9 USDT.
Please Note that the above example is for demonstration purpose only, the transaction fees may vary based on the current market conditions.