How much is the liquidation fee on crypto futures?

What a liquidation fee is

When the margin of a position falls to the maintenance level, the exchange closes the position for you. That forced close is still a trade, and exchanges charge for it — either as an ordinary trading fee or as a separate liquidation fee. It comes on top of the loss that caused the liquidation.

Three ways exchanges charge it

• The taker rate on the forced close. OKX's trading-fee rules state that forced liquidation is charged at the taker fee rate of your current tier — the same rate a market order pays.
• A fixed amount. Kraken's liquidation article lists a flat fee per liquidation for its futures accounts, with a higher amount for repeat liquidations on some products.
• A share of the maintenance margin. For multi-collateral derivatives, Kraken charges a full liquidation at half of the contract's minimum maintenance margin; partial liquidations are priced from the distance between the fill price and the zero-equity price.

The exact amounts change, so take them from the exchange's current fee or liquidation page rather than from a summary.

The fee can move your liquidation price

On some exchanges the liquidation fee is part of the trigger. MEXC's liquidation rules, for example, close an isolated position when position margin plus unrealised PnL falls to the maintenance margin plus the liquidation fee. In practice the position is liquidated a little earlier than a calculation based on maintenance margin alone suggests. Exchanges also trigger liquidation on a mark or fair price rather than the last traded price, which is another reason your own estimate can be off.

Liquidation vs closing the position yourself

A position you close yourself — by hand or with a stop-loss — pays the normal fee for that order: the taker rate for a market exit, or the maker rate if a limit order rests in the book first (see maker vs taker fees). A liquidation gives you nothing in return: the margin is lost down to the maintenance level and the liquidation charge comes on top. A stop-loss placed before your liquidation price lets you choose the exit and the order type.

Is a liquidation fee covered by a fee rebate?

Don't assume it. A rebate is calculated from the commission the exchange reports for your account, and whether a liquidation charge is part of that figure depends on the exchange and its program conditions — it is not published for every case. Treat liquidation fees as a cost you carry in full. The ordinary opening and closing fees are what a rebate is built on — see how futures fees are calculated.

How to keep it from happening

• Use less leverage. The liquidation price moves further away from your entry.
• Watch funding on longer holds. Funding you pay drains margin over time — see what a funding fee is.
• Know your numbers before you open. Work out the break-even price with fees and set the stop-loss before you enter, not after the position moves against you.