One of the most important benefits for Premium Members is the ability to trade with negative fees. In order to understand this concept, let’s first dive into how Eterbase (and most other exchanges) implement their fees.
We use a standard Maker/Taker trading fee structure — this means that for every trade that occurs on the platform, we charge a % of the trade amount from the Maker and a % of the trade amount from the Taker.
A Market Maker is a user that places a trade on the order book. By doing this they are essentially providing liquidity to the market.
A Market Taker is the user that fills a trade already present on the order book. By doing this they are essentially taking liquidity off the market.
Normally, because exchanges want to bring liquidity onto their platform, they will incentivise Market Makers by setting lower fees compared to what Market Takers pay when filing a trade.
|Tier||Maker Fee||Maker Split||Taker Fee||XBASE Locked|
|Basic||0.35 %||0.35 %||0|
|P1||0.30 %||0.30 %||100|
|P2||0.25 %||0.25 %||250|
|P3||0.20 %||0.20 %||500|
|P4||0.15 %||0.15 %||750|
|P5||0.10 %||0.15 %||1 000|
|P6||0.05 %||0.15 %||1 250|
|P7||0 %||0.15 %||1 500|
|P8||0 %||15 %||0.15 %||2 000|
|P9||0 %||50 %||0.075 %||5 000|
Negative trading fees will be paid in the base currency of the trade so users will receive BTC, ETH, XBASE, EURBASE, USDT, and EUR on an ongoing basis.
We believe that attracting liquidity to our exchange will be essential to our success — therefore, our negative trading fees system will incentivise heavy traders, market makers, and normal users to trade more on Eterbase.
Let’s assume that you are a high volume trader, with a Premium 9 Membership (50% trading fee split) on Eterbase.
You place 100 x 10 ETH trades during a day that are being matched by a Taker. Assuming a 0.05 % taker fee, during a day you will have generated:
100 x 10 ETH x 0.075 % (Taker Fee) x 50 % (Fee Split) = 0.375 ETH
If you continue to provide this liquidity during a full month you would end up with:
0.375 ETH x 30 = 11.25 ETH
If you consider that normally you would actually pay to trade, that’s a significant amount which doesn’t take into account any profits made from the trades themselves.
The good news is that you don’t have to be a market maker or a heavy trader to benefit from negative trading fees — an open-source trading bot will be provided free of charge to all users allowing them to trade 24x7x365 days a year.
Updated on 30th July 2020, 19:30 CET