Overbit will periodically release games on its platform. Some games will be related to trading. This article will explain how fees are calculated for these games.
The first game to be released is 200X Rocket.
This game involves flying a rocket while going Long or Short on a live BTCUSD position with 200X leverage in isolated margin mode.
- The cost to trade in one direction is 0.01%
- The maintenance margin is 0.25%
- All trades are done in TAKER MODE only
This represents a significant discount on Overbit's standard trading fees.
Let's say the current BTCUSD price is $30,000.
You decide to open a Long position with $200. With 200X leverage, the notional value of your position is $200 X 200 = $40,000.
The cost of opening this position is $40,000 X 0.01% = $4.00
When you start the game and go Long or Short for the first time, you'll notice your balance drops by the amount it cost to open the trade, in this case, $4.00.
While you have an open Long position, you may decide to go Short. This means you are selling double the amount of your open notional position. Therefore, it would cost you $8.00 to flip to a Short position. But it would only cost $4.00 to end your position since you are only selling one times the notional value.
Maintenance Margin and Liquidation
At a $40,000 notional value position, the maintenance margin is 0.25%. Therefore the value of your maintenance margin = $40,000 X 0.25% = $100.
This means if your current balance + unrealized PnL drops by $100, you will be liquidated and you will lose the remaining $100.
In order to avoid getting liquidated, you should flip or end your position before you hit the liquidation price.
Your new notional trade size will be based on the balance you have left over. Therefore, if you start with $200, your notional size is $40,000. Let's say you make a $20 loss and your balance now is $180. Your new notional value is $180 X 200 = $36,000.
Similarly, if you start with $200 and you make a $20 profit, at the point of flipping, your new notional value is $220 X 200 = $44,000.