Beaxy incentivizes Market Makers by rewarding them with a rebate- only the market taker pays the trading fee.
Fees are computed based on a percentage of the notional order value for a matched trade. The "Taker" side of the trade pays a fee, while the "Maker" side of the trade receives a rebate. Fees are transferred in the receiving currency of the contract being traded. Rebates are always distributed in the equivalent value of BXY based on the trading pair's collateral currency vs. BXY (BTC or USDC).
When am I a Taker, when am I a Maker?
If you submit an order that crosses the order book and is immediately matched, you pay the taker fee. If you submit an order that first sits in the order book before it is matched, you receive the maker rebate. Each maker receives a rebate of 0.02%. Again, rebates are distributed in BXY at it's equivalent value.
BXY Rebate on USDC pairs = Rebate value in USDC / Current BXY price on BXY-USDC.
BXY Rebate on BTC pairs = Rebate value in BTC / Current BXY price on BXY-BTC.
Example Maker Rebate on a USDC pair:
A user sets a Limit buy of .1 BTC on the BTC-USDC trading pair at 9788 USDC price and it is 100% fulfilled later. The rebate for this transaction follows:
Rebate value in BTC = .1^0.02% = .00002 BTC.
Now convert this into the equivalent USDC value in the transaction because this is a USDC pair.
Rebate value in USDC = .00002 ^ 9788 = .19576 USDC value
If the BXY-USDC current price = .0956
Then the rebate in BXY = .19576/.0956 = 2.047698 BXY
The user's BXY wallet will increase by this rebate rather than paying any fee.
How are Settlements, Liquidations, Assignments and Unwinds treated?
Positions that are settled in final settlement are treated as taker.
Liquidations are treated as taker.
Assignments are treated as taker.
Unwinds are treated as taker for the party causing the unwind, and fees for the other party are 0.
Post Only orders can be used in conjunction with Limit orders to guarantee that you will be the Maker when posting to the order book. This is used to help add liquidity to the exchange and ensure you will avoid paying a Taker fee. These can only be used with Limit Orders. After selecting 'Limit' as the order type, you will see a checkbox appear towards the bottom of the buy/sell order form. Click this checkbox to make your order post only.