---
description: How to calculate trading commissions for NFEX perpetual swaps?
---

# Fee Structure & Calculation

## Trading Fee Rates

Many NFT marketplaces require traders to pay high costs, such as royalty fees, trading fees, and gas fees. At NFEX, providing an excellent user experience is always our top priority. That's why traders only need to pay trading fees, which can be as low as 0.15%.

To keep things simple, NFEX operates a standard fee structure across all available NFT contracts. Each trade, whether it's an open or close order, incurs a fee based on the position value and the order type (maker or taker).

| Type     | Maker Fee | Taker Fee |
| -------- | --------- | --------- |
| Fee Rate |  0.15%    | 0.15%     |

## Low Gas Fee

To reduce costs for users, NFEX provides the NFEX Wallet, which enables traders to deposit funds to their NFEX accounts through on-chain Ethereum transactions, eliminating the need for transactions between on-chain networks and saving on transaction fees.&#x20;

Deposits and withdrawals using the NFEX Wallet are free of charge. When making a withdrawal, traders only need to pay a one-time gas fee for the on-chain transaction. This feature helps eliminate gas fees for buying and selling NFT perpetual contracts, providing a decentralized NFT trading experience while saving users' trading costs.

## Trading Fees Calculation

Formula:

$$
Commission Fee = Notional Value\times Fee Rate
$$

Where:

$$Notional Value = (Number of Contracts\times  Contract Size) \times  Average Trade Price$$

**Example:**

As noted above, the standard fees for all contracts on NFEX are: taker 0.15%, maker 0.15%. An NFEX trader predicted that the floor price of BAYC would climb in the upcoming weeks. He made the following trades at NFEX:

* **`Open a position using Market Order:`**

He placed an open-long order with 1 contract for BAYC/ETH at the market price of 60 ETH (BACY contract size: 1 contract = 1 BAYC). The order was executed immediately with a market order.&#x20;

{% hint style="info" %}
Open order value   = (number of contracts X contract size) X opening price

&#x20;                               \=  (1 Contract X 1 BAYC) X 60 ETH

&#x20;                               \=  60 ETH

Taker trading fee   =  60 ETH X 0.15%&#x20;

&#x20;                               \= 0.09 ETH
{% endhint %}

* **`Close a position using Limit Order:`**

A few weeks later, the price of BAYC/ETH on NFEX grew, and the trader placed a limit order at the price of 100 ETH to close his position, which was successfully fulfilled.

{% hint style="info" %}
Close order value =  (number of contracts X  contract size) X closing price

&#x20;                              \=  (1 Contract X 1 BAYC ) X  100 ETH

&#x20;                              \=  100 ETH

Maker trading fee = 100 ETH X 0.15% &#x20;

&#x20;                              \= 0.15 ETH&#x20;
{% endhint %}

{% hint style="success" %}
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{% endhint %}
