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    Spot Margin Trading: Fees Explained
    bybit2023-12-04 12:30:52

    There are three types of fees that will be incurred in Margin trading: Spot trading fee, interest, and liquidation fee

     

     

    Spot Trading Fee

    Trading fees are charged when buying or selling leveraged positions on the Spot market. The fee structure is the same as for Spot trading.

     

    Formula 

    Trading Fee = Filled Order Quantity × Spot Trading Fee Rate

     

    Please note that makers and takers who are non-VIP users pay a trading fee of 0.1% in the Spot market. The higher your tier, the lower the fee rates you're entitled to. 

    To learn more about Spot trading fees, please refer to the following articles:

    1. Trading Fee Structure

    2. Bybit Spot Fees Explained

      

    Interest

    Interest incurred in Margin trading is generated on an hourly basis. You can repay the loan at any time and pay interest for the actual borrowing hours. Please note that an increment of one hour will be counted as one hour. 

     

    Formula 

    Interest = Amount to Borrow × Daily Interest Rate/24 × Hours

    Example

    Suppose Trader A borrows 10,000 USDT at 8:05 AM UTC and repays at 10AM UTC. 

    Daily Interest Rate: 0.02%

    Hourly Interest Rate: 0.02%/24

     

    Trader A needs to pay interest of 0.167 USDT based on the following calculation:

    Interest = 10,000 × 0.02%/24 ×

    Please note that interest rates will vary daily. In addition, each VIP level will enjoy different daily and yearly interest rates. You can check the daily interest rate, yearly interest rate, and maximum amount to borrow for each coin here
     

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    Notes:

    — Interest will be generated immediately after you've successfully borrowed funds. It will be incurred regardless of whether the order has been filled. 

    — Interest will only be deducted from your Spot Account when you manually repay or the position is liquidated.

    — Please complete the repayment in time after closing the position to avoid long-term unpaid interest in your Spot Account, which may increase the risk level of your Spot Account.

     

    Liquidation Fee

    In spot margin trading, liquidation fees will be charged and injected into the margin insurance fund pool.

    In the event where your account goes bankrupt, i.e., when you are liquidated, you have insufficient margin assets in the spot account to repay the debt. The platform will use the margin insurance fund to cover your outstanding balance.
     

     

    Liquidation Fee Rate

    Margin Trading

    2%

     

     

    Calculation

    Formula

    Liquidation Fee = Liquidated assets × Liquidation Fee Rate 

     

    Example
     

    image.png
     

    Take the example above, liquidation triggered and the liquidated value is 93.8069873440 USDT. Below shows how to derive the liquidation fees.

    Liquidated asset = 93.8069873440 / (1+0.02) = 91.96763465 USDT

    Liquidation fee = 91.96763465 x 0.02 = 1.8393526930 USDT

     

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