Liquidation Fees

When positions get liquidated, a liquidation fee is charged to the user that gets liquidated. The liquidation fee is 0.2% of the notional.

Example Scenario

Symbol: ETH-30DEC22-1500-C Type: ETH Call Option Underlying: ETH Current Price: $2000 Strike Price: $1500 Quantity: 1 contracts Expiration Date: December 30, 2022

User A is short 1 contract of ETH-30DEC22-1500-C, which is currently in-the-money. Because User A runs out of maintenance margin, he gets liquidated.

Liquidation Fees paid by User A: 0.2% * 2000 = $4