Files
ritmex-bot/docs/nado/fees-and-rebates.md

117 lines
6.2 KiB
Markdown
Raw Permalink Blame History

This file contains ambiguous Unicode characters
This file contains Unicode characters that might be confused with other characters. If you think that this is intentional, you can safely ignore this warning. Use the Escape button to reveal them.
# Fees & Rebates
Nado's fee structure is designed for precision and fairness, rewarding liquidity providers while keeping costs lean for active traders.
The fee model follows a classic maker-taker structure across spot and perpetuals markets:
* **Makers** (limit orders adding liquidity): Earn rebates at higher tiers.
* **Takers** (market orders removing liquidity): Pay a modest fee.
All fees are calculated in basis points (bps, or 0.01%) of the trade's notional value and settled instantly in USDT0 from your collateral.
Setting Nado apart from fixed-rate models, the volume-based scaling tiers update monthly to encourage deeper orderbooks and sustained activity. As your 30-day trading volume (maker + taker) climbs, taker fees decrease and maker rebates increase, creating a virtuous cycle of growing efficiency and participation.
Traders can monitor their current tier and monthly volume accrual directly in the account overview, with epochs resetting on the first of each UTC month.
Fee tiers compete with DeFi's most cost-effective venues, letting high-volume users pay as little as 1.5 bps as a taker while elite makers are compensated to bolster the book.
***
### Trading Fees & Scaling Tiers
Nado's fee tiers scale based on your total trading volume (maker + taker) over the prior 30 days, aggregated across spot and perpetuals. Starting at accessible entry levels, they progress to elite rebates, encouraging consistent engagement without arbitrary barriers. Benefits include:
* **Capital Efficiency**: Lower fees free up more funds for positioning, amplifying returns on scale.
* **Liquidity Incentives**: Maker rebates (expressed as negative fees) directly reward orderbook depth, tightening spreads for all traders.
* **Transparency**: Real-time tier visibility lets you strategize volume to unlock better rates, with no hidden multipliers.
<figure><img src="https://1830223543-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FAF0FfquYfYpmCNhlEvb9%2Fuploads%2Fgit-blob-45c07a137e9ec7ef54c0d4c0def7e1b66c6e6f5b%2FFee%20%26%20Rebates%20Tables02.png?alt=media" alt="" width="563"><figcaption></figcaption></figure>
Fees apply per execution:
* For a partial fill, only the matched portion incurs fee charges.
* No fees are applied to deposits or non-trading actions like borrowing.
#### Minimum Fee for Takers
Taker orders are subject to a minimum fee based on each product's minimum size:
* **Orders ≥ minimum size**: Standard fee applies to the full notional value: `orderSize × feeRate`
* **Orders < minimum size**: Minimum fee applies: `minSize × feeRate` (effectively treating small orders as if they were minSize)
{% hint style="info" %}
The minimum size is measured in **notional dollar value** (USDT0), not the asset quantity itself. For example, if minSize is $100, you could trade 0.001 BTC at $100,000/BTC (= $100 notional) or 0.033 ETH at $3,000/ETH (= $100 notional).
{% endhint %}
{% hint style="info" %}
While certain order types enforce a minimum order size, the minimum fee applies to ALL taker orders regardless of size. This ensures consistent fee collection even for order types that allow smaller sizes.
{% endhint %}
**Example - Large order**: Assume minSize = $100. A $50,000 taker order at 3.5 bps:
* Fee: $50,000 × 0.035% = $17.50 (standard calculation)
**Example - Small order**: Assume minSize = $100. A $75 taker order at 3.5 bps:
* Fee: $100 × 0.035% = $0.035 (minimum fee applies, calculated as if the order was minSize)
Maker orders do not have minimum fee requirements and are charged or receive rebates on the full notional value based on your fee tier (see fee table above).
#### Example: Impact of Fee Tiers on a Trade
Consider a $50,000 ETH perpetuals market order (taker) or limit order (maker) at ETH $3,000.
> **Entry Tier** ($0 volume): Taker pays 3.5 bps = $17.50 (0.035% × $50,000). Maker pays 1 bp = $5.00.
> **Mid-Tier** ($25M volume): Taker pays 3 bps = $15.00. Maker pays 0.5 bps = $2.50.
> **Elite Tier** ($5B+ volume): Taker pays 1.5 bps = $7.50. Maker receives rebate of 0.8 bps = -$4.00 (added to collateral).
The scaling dynamic rewards whales without alienating newcomers, as even base rates (3.5 bps taker) beat many other exchange venues fee models.
{% hint style="info" %}
Maker rebates accrue instantly to your subaccount, boosting health and compounding on unified cross-margin.
{% endhint %}
***
### Sequencer & Network Fees
Nado's off-chain sequencer handles order matching for sub-15 ms speed, with on-chain settlement via Ink L2.
To cover onchain interactions without gas volatility, Nado charges flat, predictable fees in USDT0 (or equivalent asset for withdrawals) cheaper than typical L2 costs.
* **Deposits**: 0 USDT0 (instant bridging from Ink).
* **Order Placement** (Maker): 0 USDT0.
* **Order Placement** (Taker): 0 USDT0 (bundled with trading fee).
* **Subaccount Transfers**:
* Standard: 1 USDT0
* Isolated subaccounts: 0.1 USDT0 (when either sender or recipient is isolated)
* **Liquidations**: 1 USDT0 (to the liquidator).
* **Withdrawals**:
* USDT0: 1 USDT0
* wETH: 0.0006 wETH
* kBTC: 0.00004 kBTC
Sequencer fees are exclusively applied upon successful execution of the corresponding action. Failed actions, such as an attempt at an under-collateralized withdrawal, incur no sequencer fee charge.
Nado submits orders on-chain to the Ink L2 in batches to optimize for gas efficiency. During instances of excessive network congestion and high gas costs on-chain, Nado withdrawals may queue longer than usual, typically settling within \~30 minutes maximum.
### Fast Withdrawals
Users can also select the option for "Fast Withdrawals" anytime for withdrawal priority, which incurs an extra USDT0 charge, calculated as follows:
$$
\text{Fast Withdrawal Fee} = 1 , \text{USDT0} + \max\left(5 , \text{USDT0}, 10 , \text{bps} \times \text{amount}\right)
$$
For BTC, the fee calculation is:
$$
\text{Fast Withdrawal Fee (BTC)} = 1 , \text{USDT0} + \max\left(0.0002 , \text{BTC}, 10 , \text{bps} \times \text{amount}\right), \text{ when the withdrawal fee for BTC is } 0.00004 , \text{BTC}
$$
With tiered scaling and minimal overhead, Nado's fee model turns every fill into forward momentum precise, scalable, and built for the long-haul.
***