FTX crypto exchange commissions

В FTX A complex system of commissions for the spot and futures markets is in place. It is based on the traditional fee scheme for taker and maker. As a reminder, a maker is a customer who generates liquidity on crypto exchange. It places orders, which are executed with a delay, that is, it works for the future. The platforms are interested in attracting makers, so, as a rule, his trading commissions are less than his deductions.

Takers place orders at market prices “for now”, which are executed instantly, and thus they take liquidity from the exchange. That’s why their commission is often higher than that of the takers. On the site ftx.com the size of deductions also depends on trading volumes of traders for 30 days. So, for the Level 1 makers with zero trading volume, the fee will be 0.020%, and if the trades exceeded 25 million dollars a month (Level 5 maker), the fees are zeroed.

For takers on level 1, the deduction is 0.070%, and on level 6 (volume over $50 million) the fees are reduced to 0.040%. Note that on the spot, liquidity-creating users are charged in the currency they receive, e.g., the pair BTC/USD is BTC. And traders who take liquidity, pay the fee in the given currency, that is, in the pair of BTC/USD is USD.

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On FTX, deductions are also affected by whether or not the user is an internal token holder FTT. Specifically, for FTT holders holding the equivalent of $100, the discount will be 3%. If a customer holds $1 million in FTT, the discount will be 40%. And if the FTT reaches $2.5 million, the holder gets a 50% discount and automatic VIP1 status. When the FTT amount reaches $5 million, the discount will reach 60% and the status will be upgraded to VIP2. At the same time, even if all conditions are met, the commission from the taker cannot be lower than 0.015%.

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A liquidity-generating user can reduce deductions to zero by contributing to Steaking 25 FTT. Recall, staking is a way to mine Proof of Stake and a variant of passive income on crypto platforms: part of the client’s funds is frozen and the client receives a certain reward for keeping them.

The FTX crypto exchange allows for margin spot trading, i.e., trading on borrowed funds. The borrower pays interest on the loan, but is also charged a fee for the loan. The procedure and amount of these deductions are specified when drawing up the loan.

VIP and market makers

Since June 2022, FTX platform introduced additional levels for VIP and market makers, accordingly, additions were made to the commission policy. In particular, the crypto platform now has seven VIP levels, which are determined by the percentage of a client’s trading volume. For example, Level 1 is assigned to the client, whose volume is 0.1% from the exchange volume, and the size of deductions from such taker is 0.0375%, and at Level 7 fee is reduced to 0.025%, with trading indicators 2.5% from exchange trading.

Traders generating liquidity are not charged anything, on the contrary, under certain conditions the deductions from market makers go into the area of negative values. For the MM1 level the size of the fee is reduced to -0.001%, while the user’s trading volume must reach 0.025%. And for the MM7 level the fee is already -0.01, with a share of 1.5% of the platform’s trading volumes. In addition, liquidity providers receive monthly payments: 1.5 million dollars in accordance with the total volume of transactions trader on the platform FTX. 250 thousand dollars a month, the client who trades options, in proportion to the turnover of trades. And also the trader can count on a bonus of $ 1 thousand, when working in markets with a turnover of more than 30 thousand dollars.

Futures

On FTX, there are no fees for executing futures settlements in normal mode. But with leveraged trading, the trader is charged 0.10% to create and exchange an order and the daily management fee is 0.03%. For MOVE contracts, the size of the withholding depends on the price of the underlying index, not the price of the MOVE contract.

Withdrawal of funds

Users are charged when they withdraw small amounts of VTC, ETH cryptocurrency and ERC20 coins from the exchange. The fee is also affected by the percentage of FTT tokens held in stacking. For example, a Tier 1 trader can withdraw ERC20 tokens without fees, provided they hold 25 FTT in stacking. At Level 7, a trader holding 1 million FTT can transfer up to 1k ERC20 tokens from the exchange.

In addition, the platform may charge an additional 0.10% of the transfer amount if the withdrawal in fiat or stabelcoin is higher than the trading volume. At the same time, withdrawals of bitcoins over 0.01 BTC are free. With regard to fiat, the withdrawal of funds from the exchange of 5 thousand dollars and more is free. If less than 5 thousand dollars, then only 1 withdrawal per week will be free. But if there are 25 FTT and more in stacking, then withdrawals from platform and less than 5 thousand dollars will be free.