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:

   

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.