What are the fees to trade on Derive?
Fees on Derive differ if you are are maker (i.e., you put out a resting limit order that is filled) or if you are a taker (i.e., you buy or sell against an existing order); takers pay a base fee of $0.50 per order, regardless of order size. The fees also differ by instrument (options vs. perps) and are set out in the table below:
Instrument | Maker | Taker |
Perp | 0.01% x notional volume | $0.1 base fee + 0.06% x notional volume |
Option | 0.03% x notional volume | $0.5 base fee + 0.04% x notional volume |
Option fees are capped at 12.5% of the value of the option.
Examples:
Alice buys 2 ETH $2,000 puts against an existing order on the book, with the spot price at $2,200. The fee charged: $0.50 + (0.0004% * $4,400) = $2.26.
Bob submits an order to short 0.1 BTC perp and later gets filled by Charlie, with the spot price at $43,000. The fees charged:
To Bob (Maker): 0.0001% * $4,300 = $0.43.
To Charlie (Taker): $0.10 + (0.0006% * $4,300) = $2.68.
What are the fees if I get liquidated?
If a user's position is liquidated, a liquidation fee is levied. The fee is 10% of the liquidated portfolio value, marked to market.
Examples:
Alice has a $10,000 portfolio (marked-to-market) and is below her maintenance margin requirements. If 20% of her portfolio is liquidated to bring her account above maintenance margin, her fee will be 10% x $2,000 = $200.
Other Fees
Interest on Borrowed USDC: Interest charged on the debit balance of borrowed USDC, i.e. the fee only applies if your account has a negative cash component. This is charged according to a utilisation curve, similar to the one in use in AAVE (the more negative cash in the system, the higher the interest rate). Derive charges a spread on the long/short balance in the system.