Maker-taker fees
Maker-taker fees differentiate between adding liquidity (maker) and removing liquidity (taker), with different fee schedules and rebates.
Makers place resting orders that add depth; takers execute against existing orders. Fee schedules incentivize liquidity and fund exchange operations.
"An exchange charges 0.1% taker fee but offers 0.0% or rebates for makers to encourage tighter spreads."
"VIP tiers reduce fees based on 30-day volume or token holdings."
Maker/taker structures impact strategy choice; passive makers aim for rebates while active takers prioritize execution certainty.
"Posting iceberg or post-only orders ensures maker status and avoids taker fees."
"High taker fees discourage market orders in illiquid pairs, pushing usage toward limit orders."
Related Terms
Cryptocurrency Exchange
→A platform that facilitates the buying, selling, and trading of cryptocurrencies. Exchanges can support crypto-to-crypto or crypto-to-fiat transactions and serve as crucial infrastructure in the digital asset ecosystem.
Decentralized Exchange
→A decentralized exchange (DEX) is a platform that allows users to trade digital assets directly with each other, without the need for an intermediary, such as a brokerage or bank.
Limit Order
→A trading instruction to buy or sell an asset at a specified price or better.
Market Order
→A type of order to buy or sell a security at the best available price in the current market.
All terms and definitions may update as the Cryptionary improves.
