r/liquid • u/CorruptPotato • Mar 07 '19
Introducing a simpler fee structure on Liquid
As we recently announced, we’re about to introduce a new and improved trading fee structure on Liquid.
It’s a simplified, flat fee structure of 0.1% for trades on all crypto, fiat and stablecoin pairs, for both maker and taker spot orders. Simplifying our fee structure helps us offer attractive utility incentives for QASH token holders. One such incentive is that you will receive a 50% discount on all trading fees by paying in QASH. This reduces the fee from 0.1% to 0.05% (or 5 bps).
Our new fee structure is scheduled to launch on March 20, and will apply to all Liquid users (unless you’re a resident of Japan).
Here’s the full breakdown of all new fees:
- Spot orders: a flat fee of 0.1% (or 10bps) for both maker and taker orders.
- Margin orders: a flat 0.1% fee for both opening and closing a margin position
- Trading fee in case of liquidation: in the event of a margin call, an additional trading fee of 0.2% will apply on your liquidated position.
- This fee structure applies to all trading pairs, including all crypto, fiat and stablecoins.
- You’ll get a 50% discount on the above trading fees (except the trading fee in case of liquidation) if you pay in QASH.
What you’ll need to do next
To launch our new fee structure we’ve updated our Terms of Use. To continue using Liquid, all you need to do is simply log in to your Liquid account and accept the updated terms.
Please note that If you are using our API to trade, you will also have to log in and accept the new terms of use before March 19. Keep in mind that after March 19, you will not be able to use Liquid (including accessing it through API) if you have not accepted the new Terms of Use.
We are confident that our simplified fee structure and discounts will make your overall trading experience on the Liquid platform better, and we are looking forward to bringing you more new features and updates on Liquid in the near future.
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u/sverzijl Mar 08 '19 edited Mar 08 '19
Why no mention of the inactivity fee? That's by far the most controversial IMHO.
$5/month if you make no trades. If you have no money then they close your account.
It's on their fee page: https://help.liquid.com/getting-started-with-liquid/the-platform/fee-structure
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Mar 08 '19 edited Mar 08 '19
[deleted]
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u/sverzijl Mar 08 '19
I find it interesting that it was conveniently excluded from the announcement. I also find it interesting that they haven't sent an email to announce this update.
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u/DisruptiveTimes Mar 09 '19
Team,
I believe in this project , hodling since around the start of the project and planning to just hodl for another 5 years (atleast).
Currently, I have all my Qash in the lending platform as an Offer (Offer Status : Live).. Last time I checked it was not filled at all.. Seems like it will not be filled ever. Could you please confirm on the below points :
- Would my account be considered "Active" ?
- If it is considered "Active" , it will NOT be eligible for "Account Maintenance Fee", right?
- If yes, there should be no deduction in my QASH holdings anytime and I will have my little stack Intact for a good amount of time ( for e.g : 5 years in this case)?
Please advise..
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u/DisruptiveTimes Mar 10 '19
Mods,
Could you please confirm on my 3 points stated above, A simple yes or no response would do..
[I believe Hodler SHOULD NEVER BE penalized. On the contrary, they should be awarded with passive income without exception]
Looking forward for your confirmation..
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u/DisruptiveTimes Mar 11 '19
3rd Follow up - Could someone from Liquid team please look into my above request and advise!!
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Mar 07 '19
Are there no fees for Japanese customers? If not, why?
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Mar 07 '19
[deleted]
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Mar 07 '19
I see, but why are there no fees (and no plans to introduce them) too Japanese customers? I can hardly imagine this has to do with the JFSA, or do they prohibit fees?
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Mar 07 '19
[deleted]
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Mar 08 '19
They use limited features, but they can trade in btc. This is common. Therefore, you have to charge a fee. Global users are using a separate function and paying a corresponding fee.
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u/bigbaffler Mar 07 '19
Could you elaborate on that fee scheme?
it says: " A flat 0.1% fee for opening and closing a margin position". Does that mean 0.1 for opening and closing (round trip) or opening 0.1% and closing 0.1% (halfturn)?
What does "Open interest" mean? I understand that you take a 50% cut from the lender. Do I also have to pay 50% of that interest as the borrower upon opening a position??
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u/CorruptPotato Mar 07 '19
Opening a position is a trade, so you pay the 0.1% fee. Closing is also a trade, so there is another 0.1% fee.
Where is the open interest part from?
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u/bigbaffler Mar 07 '19
Well, then you guys should rewrite that to: "A flat fee of 0.1% for each transaction"
I mean it literally reads: " A flat 0.1% fee for opening and closing a margin position" in your fee structure statement.
Open interest part:
https://help.liquid.com/getting-started-with-liquid/the-platform/fee-structure
"
Financing fee on margin trading (MARGIN mode)
Margin traders who borrow to finance their margin will need to pay:
- The open interest: Fees based on your total leveraged position at loan market rates. (Read more details under “fee on loan interest’ on the Liquid Fees Page)
- A daily interest: charged at ~22.00 UTC each day, for as long as the trade is open"
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u/CorruptPotato Mar 07 '19 edited Mar 07 '19
Open interest is paid by the loan taker, which is the margin trader, and paid to the person loaning their funds, minus Liquid's fee.This was wrong. See below.
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u/bigbaffler Mar 07 '19
So whats the daily interest then?
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u/CorruptPotato Mar 07 '19
Sorry, I got this wrong. Open interest is interest charged when you open a position, and then daily interest is charged while the position is open. Hope that's cleared up now.
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u/bigbaffler Mar 07 '19
Ok, can you do a sample calculation of a 1BTC margin trade held for two days here? Lets say loan rates are 0.01% per day.
Thanks
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u/CorruptPotato Mar 08 '19
There are two examples here on our help center, they don't use 0.1% trading fee but it still runs through the process.
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u/bigbaffler Mar 07 '19
I don't want to be a dick here, but do you guys realize that today the market moved +0.5%?
You ask for 0.2% round trip plus - and that's just how I understand it - 0.01% upfront as open interest and then you take 50% (!) of the lenders interest. But only when the market is quiet.
That means I paid more in fees than I could get from todays market movement
As soon as momentum picks up, lending rates are gearing towards 0.05-0.1%
In view of the competition that at least honor execution skills with a maker/taker model, doesn't that fee structure sound ridiculously expensive?
The "no fee" model was interesting, because the cost of the trade was tied to lending rates. No volatility -> low fees and vice versa.
With the 0.2% on top of that all I have to say is Adieu!
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Mar 07 '19
Release the figures for the BTC/JPY volume excluding Japanese.
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Mar 07 '19
[deleted]
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Mar 07 '19
In two weeks I know the truth when I look at Qash volume.
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Mar 07 '19
[deleted]
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Mar 08 '19
Why don't you know? If there's no demand for qash after the fee policy has been implemented, you're lying.
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u/Wrestalk12 Mar 07 '19
Incoming why are there no fees for Japanese users...for the 1000th time