Fees & Slippage

Fees

When users trade perpetual contracts on OrangeBit, the fee structure is transparent and clearly displayed before order confirmation. Key fee components include:

• Opening Fee: Charged at the time a position is opened.

  Example: If you open a position of 10 contracts at an entry price of US$2,000, and the opening fee is 0.08%, then the fee = 10 × 2,000 × 0.08% = US$16.

• Closing Fee: Charged when a position is closed. The closing fee rate may equal or differ from the opening fee rate depending on the instrument.

• Funding Payments: For perpetual contracts, periodic payments occur between long and short positions to maintain price parity with the underlying asset. These payments are reflected on-chain and affect total cost or profit of the position.

• Execution Fee / Network Fee: Because OrangeBit uses a hybrid model (off-chain order matching, on-chain settlement), some blockchain gas/settlement cost may be factored into execution fees for certain chains or large positions.

Slippage & Price Impact

Slippage and price impact are distinct but related concepts that affect execution quality. OrangeBit manages them proactively and gives users control tools.

• Price Impact: The effect that a user’s own trade has on the market price of the instrument. Large orders relative to available liquidity will move the market and thus incur higher price impact.

• Slippage: The difference between the expected execution price and the actual filled price. It can result from market movement after order submission, liquidity consumption, or execution delay.

• User-Controlled Slippage Tolerance: OrangeBit enables traders to set a maximum slippage tolerance in the order confirmation UI. If execution would exceed this tolerance (for example due to insufficient liquidity or rapid price movement), the order will be cancelled rather than executed at an unfavorable price.

  • For example: a trader selects a max slippage of 0.2%. If order execution price moves by more than 0.2% away from expected price, the system cancels the order.

  • OrangeBit may also deploy fixed slippage models for very high-liquidity pairs (e.g., BTC perpetual) where slippage is capped at a small percentage (e.g., 0.01%) to reflect deep market depth.

• Transparent Example: Suppose a trader places a market buy for 1 ETH contract at expected price US$2,000 with slippage tolerance 0.2%. If due to order book depth and market movement the actual entry price becomes US$2,003 (a 0.15% deviation), the trade executes. If the price had moved to US$2,005 (0.25% deviation) and exceeded the tolerance, the order would be cancelled.

• Fee + Slippage Combined Cost: Trading cost = Entry cost + Fees + Slippage + Funding (when applicable). All these components are shown in the UI and can be audited on-chain.

OrangeBit’s fee and slippage framework is designed to deliver fair, transparent, and controllable costs:

• Users always see estimated fees and slippage before confirming a trade.

• Slippage is limited by user-set tolerance or platform-cap for deep-liquidity markets.

• All trade execution, fee application, and slippage effects are fully auditable on-chain, supporting OrangeBit’s commitment to user custody, transparency and high-performance trading.