👻Fee

Execution Fee

The execution fee is charged when users execute an openPosition or closePosition, and its rate is 0.07% of the position. Below are examples:

Example 1 (openPosition): Long BTC, BTC = $70,000, Margin = $7,000, Leverage = 10, Position Size = $70,000

• When user executes an openPosition, the position will be $70,000.

• Since K-BIT charges 0.07% of each position, the fee is calculated as $49.

• By deducting the fee from the margin $7,000, the remaining margin is calculated as $6,951.

• As leverage remains the same, the final Position Size is $69,510.

Example 2 (closePosition): Everything is the same except for BTC = $77,000

• When user executes a closePosition at a BTC price of $77,000, the user's profit is $6,951 as the BTC price increased by 10%.

• So the Position Size is $76,461 and 0.07% of that is calculated as $53.5227.

• By deducting the fee ($53.5227) from the margin ($6,951) + profit ($6,951), the trader receives 13,848.4773 when executing a closePosition.

Funding Fee

Funding fee is designed to balance the long and short position sizes in K-BIT. It is charged to the dominant position of each trading pair by multiplying the funding rate with each trader's position size. These collected funding fees are transferred to the opposing positions of the same trading pair. The funding rate is the calculated using the function below.

Funding Rate Calculation

$$fundingRate = f(marketSize, longPositionSize, shortPositionSize, fundingRateFactor)$$

Each funding fee is then calculated using the following formula:

Funding Fee Calculation

$$\text{fundingFee} = \text{positionSize}_{i}^{p} \cdot \text{fundingRate}^{p}$$

$$P = \{ \text{BTC/USDT}, \text{ETH/USDT}, \text{SOL/USDT}, \ldots \} \\ p \in P$$

$$i \in \text\{1,2,3,...,N\}$$

When the funding rate is positive, traders holding long positions pay fees to traders holding short positions. Conversely when the funding rate is negative, short positions pay fees to long positions.

The funding fee is charged on a block basis, and its hourly rate is displayed on K-BIT's website. If traders hold their positions for an extended period, the accumulated funding fee could lead to the liquidation of the position, even if the trading pair experiences no price fluctuation.

This highlights the importance for traders to actively monitor their positions and manage their risk accordingly.

Adjust Margin Fee

Traders can add or remove margin from their open positions at any time. When a margin adjustment is made, a 0.1% fee is charged on the adjusted amount. For example, if a trader adds 100 USDT to their existing position, a fee of 0.1 USDT will be charged for the action.