What are trading fees?
What are trading fees?
BOTS wants to make sure that everyone in the world has the opportunity to build a second, passive income through investing. To do so, we need the help of our bot creators. But what can you expect from us, what do we expect from you, and how do things work? Let’s tell you all there is to know.
Let’s take a look at the trading fees. How are trading fees, management fees, performance fees calculated, and maybe most importantly: how do you as a bot creator get paid? Let’s dive in.
How fees are divided
Your bot is a success, and everyone’s making money. So how do you withdraw your fees? An average transaction on the BOTS platform comes with a specific price. A fee is used to support both the platform and the bot creators.
We’ve promised the BOTS app users that the fees won’t be more than 0.2%. This 0.2% will be divided as follows: 50% will go to the exchange, and the other 50% will be equally split between BOTS and the bot creator.
Good to know, but obviously, you’d also like to see how this money ends up in your pocket.
How fees are calculated
As mentioned before, fees are calculated in several ways. To make things easier, we’ll use Basis Points for these calculations. One BS equals 0.01%.
- Firstly, your transaction fee will be based on how often you trade. Say you trade 0–2 times a month; you will get 1BP. But if you trade 2–10 times a month, you will get 3BP. Do you trade 10+ times a month? Then you’ll end up with 4BP.
- Secondly, there are the management fees. These are specifically for the bot creators that release bots with a lower trading volume. To make it worth their while, these bots get an additional management fee on top of their 1BP. This management fee is 2.5BP per week, depending on the number of assets under your management. This way, releasing less frequently trading bots will still be worth your while.
- And last but not least, there are fees distributed in the Performance Pool. The Performance Pool is an assembly of the best performing bots. The Performance Pool is selected each month, which means that new fees will be distributed every month.
How does it work? Pretty straightforward. Say we have 100K to distribute in a specific month. In this case, the best performer of that month gets 25% of that 100K. The runner-up receives 15%, third place receives 10%, and the remaining 55% will be distributed to the rest of the bots in the ranking.
Now that you know how fees are divided and calculated, you’ll probably be eager to learn how to withdraw your earnings. The answer is quite simple: in the BOTS app! All these fees will be distributed to your BOTS wallet, and you’re free to withdraw them from here whenever it suits you!