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    Leveraged Tokens: Fees Explained
    bybit2024-10-17 09:12:11

    There are five types of fees that will be incurred in Bybit Leveraged Token trading, including trading fee, subscription fee, redemption fee, management fee and funding fee. 

     

    Each fee is calculated as follows:

     

     

    Fee Calculation

    Trading Fee

    Filled Order Quantity × Trading Fee Rate*

    *Trading Fee Rate: 0.1%

    Subscription Fee

    Subscription Quantity ×  Subscription Price × Subscription Fee Rate* 

    * Subscription Fee Rate: 0.05%

    Redemption Fee

    Redemption Quantity × Redemption Price × Redemption Fee Rate* 

    * Redemption Fee Rate: 0.05%

    Management Fee 

    Net Asset Value × Position Quantity × Daily Management Fee Rate*

    * Management Fee Rate: 0.005%

    Funding Fee

    Position Value × Funding Rate

     

    Let's look at a few examples below:

     

     

     

    Trading Fee

    Trading fees are charged when buying or selling Leveraged Tokens in the Spot market.

     

    Formula 

    Trading Fee = Filled Order Quantity × Trading Fee Rate

    Trading Fee Rate: 0.1%

     

    Example

    Trader A places an order for 200 BTC +3L. He is under the non-VIP level. The trading fee paid by Trader A is 0.2 BTC +3L, based on the following calculation:

     

    200 × 0.1% = 0.2 BTC+3L

     

    To learn more about the trading fees applied for different VIP levels, please refer to the article Trading fee structure

     

     

     

     

     

     

     

     

    Subscription Fee

    Subscription fees are charged when traders choose to subscribe Leveraged Tokens.

     

    Formula

    Subscription fee = Subscription Quantity ×  Subscription Price ×  Subscription Fee Rate

    Subscription Fee Rate: 0.05%

     

    Example

    Trader A subscribe 200 BTC +3L at a purchase price of 7 USDT. The subscription fee paid by Trader A is 0.7 USDT, based on the following calculation:

     

    200 × 7 × 0.05% = 0.7 USDT

     

     

     

     

     

     

     

     

    Redemption Fee

    Redemption fees are charged when traders choose to redeem Leveraged Tokens.

     

    Formula

    Redemption Fee = Redemption Quantity × Redemption Price × Redemption Fee Rate 

    Redemption Fee Rate: 0.05%

     

    Example

    Trader B redeems 100 BTC+3L at the redemption price of 10 USDT. The redemption fee payable by Trader B is 0.5 USDT, based on the following calculation:

     

    100 × 10 × 0.05% = 0.5 USDT

     

     

     

     

     

     

     

     

    Management Fee 

    The management fee of 0.005% will be charged daily at 12AM (midnight) UTC. It will be reflected in the net asset value of the Leveraged Token. Your position quantity will not be affected.

     

    Formula

    Management Fee = Net Asset Value × Position Quantity × Daily Management Fee Rate

    Management Fee Rate: 0.005%

     

    Example

    Revisiting Trader A’s case, he holds 200 BTC+3L. Assuming the net asset value is 10 USDT, the management fee paid by Trader A is 0.1 USDT, based on the following calculation:

     

    200 × 10 × 0.005% = 0.1 USDT

     

     

     

     

     

     

     

     

    Funding Fee

    Funding fees are charged based on the funding rate of the underlying asset of a Leveraged Token, and are reflected on the NAV of the Leveraged Tokens. Your position quantity will not be affected. Traders can check the funding timestamp from the trading page of the respective Perpetual Contracts. 

     

    Formula

    Funding Fee = Position Value × Funding Rate

     

    To learn more about how funding fees are calculated, please refer to the Funding Fee Calculation.

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