Fees

Trading Fees

Taker fees: 0.05% of the notional

Maker fees: 0.03% of the notional

Options fees can never be higher than 12.5% of the options price. For example, if an option is traded at $1 (ETH at $1k), the fee will be $0.125 (instead of $0.3)

Hence, trading fees can be defined as: min((taker or maker * qty * index_price), (0.125 * option_price))

Example Scenario

Symbol: ETH-30DEC22-1500-C Type: ETH Call Option Underlying: ETH Current Price: $1000 Strike Price: $1500 Quantity: 1 contracts Expiration Date: December 30, 2022 Premium: 20 USDC

User A sets a limit sell order for 1 ETH-30DEC22-1500-C contract, with price 20 USDC. User B places a market buy order for 1 of the same contract, and pays the 20 USDC premium.

Trading fees paid by User A (Maker): min((0.03% * 1 * $1000), (0.125 * $20)) = min($0.45, $2.5) = $0.45

Trading fees paid by User B (Taker): min((0.05% * 1 * $1000), (0.125 * $20)) = min($0.75, $2.5) = $0.75

Settlement Fees

When options expire in the money, there is an exchange of cash between buyers of the option and sellers of the option. Aevo charges a 0.015% settlement fee on the notional of the option that expired in the money. This fee is charged to the holders of the option at expiry.

Settlement fees can never be higher than 12.5% of the option's value.

Settlement fees are also not charged for Daily Options.

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 holds 1 contract of ETH-30DEC22-1500-C, which is in-the-money at expiry.

Settlement Fees paid by User A: min(0.015% * 1 * $2000, (0.125 * ($2000-$1500)) = min($0.3, $62.5) = $0.3

User B holds 1 contract of ETH-30DEC22-2500-C, which is out-of-the-money at expiry. User B pays no settlement fee.

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