Understanding Perpetual Contract Fees: How Much Is Deducted Daily and How Are Fees Calculated?

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Perpetual contracts have become one of the most popular instruments in the cryptocurrency derivatives market. Unlike traditional futures, they do not have an expiry date, allowing traders to hold positions indefinitely. However, many new and even experienced traders often wonder: how much is deducted from my account each day when trading perpetual contracts? More importantly, how are fees calculated? This article breaks down all the costs involved—trading fees, funding fees, and potential delivery charges—in clear, actionable detail.

What Are the Costs Involved in Perpetual Contracts?

Trading perpetual contracts involves several types of fees. While some are charged only upon execution (like trading fees), others recur periodically (like funding rates). Let’s explore each component thoroughly.

1. Trading Fees

Every time you open or close a position, the exchange charges a trading fee. This fee is deducted in the settlement currency of the contract—e.g., BTC for BTC/USDT contracts—and is reflected in your realized P&L.

Trading fees differ based on whether you're a maker (placing limit orders that add liquidity) or a taker (executing market orders that remove liquidity):

These rates apply to both opening and closing positions.

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Formula:

Trading Fee = (Number of Contracts × Contract Size / Execution Price) × Fee Rate

Example 1: BTC Perpetual Contract

Opening fee = (200 × 100 / 5000) × 0.04% = 0.0016 BTC

Later, close at $6,000 via limit order (maker)

Closing fee = (200 × 100 / 6000) × 0.02% = 0.000667 BTC

Example 2: EOS Perpetual Contract

Opening fee = (200 × 10 / 2) × 0.04% = 0.4 EOS

Close at $3 via limit order

Closing fee = (200 × 10 / 3) × 0.02% ≈ 0.1333 EOS

⚠️ Note: Fees are only charged upon successful trade execution—not when placing the order.

2. Funding Fees: The Daily Cost of Holding Positions

Unlike fixed-term futures, perpetual contracts use a mechanism called funding rates to keep the contract price aligned with the underlying spot price.

Funding is exchanged every 8 hours (at 04:00, 12:00, and 20:00 UTC) between long and short position holders. You don’t pay this to the exchange—it goes directly to the opposing side.

How Is Funding Rate Calculated?

The funding rate consists of two components:

  1. Interest Rate (I): Typically set at 0.01% per funding period (equivalent to ~0.03% daily). For some pairs like LINK/USDT or BNB/USDT, this may be 0%.
  2. Premium Index (P): Reflects the price divergence between the perpetual contract and the index price.

Final Funding Rate (F) = Premium Index (P) + Clamp(Interest – Premium, -0.05%, +0.05%)

In stable markets, if the premium is within ±0.05%, the funding rate defaults to the interest rate—usually 0.01% per cycle.

Who Pays Whom?

This incentivizes traders to bring the contract price back in line with the index.

💡 Tip: Monitoring funding rates can help you decide whether to enter long or short—negative funding can mean free yield for longs during market downturns.

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3. Delivery Fees (Only for Quarterly or Expiring Contracts)

While perpetual contracts don’t expire, some platforms offer quarterly futures alongside them. If you hold such a contract until expiry without closing it manually, the system will auto-settle your position—and charge a delivery fee.

This fee is deducted in the base currency.

Example:

For EOS:

✅ Reminder: True perpetual contracts do not have delivery fees since they never expire.

Frequently Asked Questions (FAQ)

Q1: Do I get charged every day just for holding a perpetual contract?

Not exactly. There’s no fixed daily fee, but you may pay or receive funding every 8 hours, depending on market conditions. Over a day, this amounts to roughly three cycles.

Q2: Can I avoid paying funding fees?

Yes—by closing your position before the next funding timestamp (check UTC times). Alternatively, during negative funding periods, holding long positions earns you payments.

Q3: Are trading fees high on major exchanges?

Most top-tier platforms offer competitive rates between 0.02%–0.04%, with volume-based discounts and fee rebates for makers.

Q4: Why does the funding rate exist?

It ensures that perpetual contract prices track the spot market closely, preventing sustained price divergence through economic incentives.

Q5: Is there a way to predict funding rate changes?

While not perfectly predictable, sharp premiums or discounts between contract and spot prices often precede higher funding rates. Watch the premium index and open interest trends.

Q6: What happens if I don’t have enough balance to pay funding?

Your position may be reduced or closed partially to cover the cost, especially if you’re highly leveraged.

Why Perpetual Contracts Are Ideal for Modern Traders

Perpetual contracts align well with decentralized finance principles and crypto market dynamics by:

They also reduce unexpected losses from forced liquidations due to contract expirations and allow for more accurate long-term positioning.

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Final Thoughts

Understanding the cost structure of perpetual contracts is essential for profitable trading. While there’s no flat “daily deduction,” traders should account for:

By mastering these elements—and leveraging tools like funding rate alerts and fee calculators—you can optimize your strategy, minimize unnecessary costs, and improve net returns.

Whether you're scalping volatility or holding long-term directional views, knowing exactly what’s being deducted—and when—gives you full control over your trading performance.

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