# Fees and Commissions
ClickOptions applies a **transparent and capped fee model** to all option trades.\
Fees are charged on trade entry, exit, and at expiry if the option expires in-the-money (ITM).
### **1. Trading Fee**
Trading Fees are charged when **opening** or **closing** an option position.
**Formula:**
$$
\text{Trading Fee} = \text{Index Price} \times \text{Quantity} \times \text{Contract Size} \times \text{Fee Rate}
$$
**Fee Rate:** 0.025% (default)
#### **Maximum Fee Cap**
The trading fee can never exceed **10% of the option’s total value (premium paid).**
$$
\mathrm{TradingFee}\_{\max} = \mathrm{OptionPrice} \times \mathrm{Quantity} \times MaxCapRate
$$
If the calculated trading fee exceeds this cap, the maximum value applies automatically.
### **2. Exercise Fee**
ClickOptions options are **cash-settled**. An **Exercise Fee** is charged **only when an option expires in-the-money (ITM)**, and **daily options opened and expired on the same day are exempt**.\
Importantly, the fee is applied **to your exercise profit/loss (P/L)**—**not** to the underlying notional—making it more user-friendly and proportional to the actual outcome.
**Formula:**
$$
\text{Exercise Fee}
===================
\min\left(
\text{Exercise Fee Rate} \times \text{Settlement Price} \times \text{Contract Size},
\ 10% \times \text{Option Value}
\right)
\times \text{Position Size}
$$
* **Exercise Rate:** 0.01%
* **Max Cap:** 10% of the option’s open premium value.
* The lower of the two values (calculated fee vs. max cap) is applied.
> For more details, please see the [**Expiry & Settlement**](/trade/expiry-and-settlement.md) section.
### **3. Click Token Discounts**
Traders can reduce all fees by paying in **Click Token (CLK)**.\
Discount levels depend on staking and Vault participation:
| Tier | Requirement | Discount |
| ---- | ------------------------------------------------------ | -------- |
| 1 | Pay fees in Click Tokens | 25% |
| 2 | Stake Click + Pay in Click | 35% |
| 3 | Stake Click + Participate in ClickVault + Pay in Click | 45% |
**Formula:**
$$
\mathrm{DiscountedFee} = \mathrm{Fee} \times (1 - \mathrm{DiscountRate})
$$
Where:
* *Fee* = Trading or Exercise Fee (in USDT)
* *Discount Rate* = 25%, 35%, or 45% depending on tier
> Staking **CLICK** or **stablecoins** in the ClickVault unlocks higher fee discounts and boosted APY returns.
>
> See [**Staking & Vault Participation**](/earn/staking-and-vault-participation.md) for full details.
### **4. Balance & Equity Handling**
* When opening a position, both the **option premium** and **Trading Fee** are deducted immediately.
* To close early, the account must have sufficient equity to cover the **closing Trading Fee**.
* If equity is insufficient, the platform blocks the close request and shows a warning.
### **5. Worked Examples**
**Assumptions:**
* **BTC Contract Size:** 0.01 BTC per contract
* **Fee Rate:** 0.025%
* **Exercise Fee Rate:** 0.25%
* **Max Fee Cap:** 10% of option premium value
#### **Example A – Open & Close Before Expiry**
| Parameter | Value |
| ------------- | ------------ |
| Index Price | 110,000 USDT |
| Option Price | 150 USDT |
| Contract Size | 0.01 BTC |
| Quantity | 1 |
| Max Cap | 10% |
**Step 1 – Trading Fee (per side)**
$$
110{,}000 \times 1 \times 0.01 \times 0.00025 = 0.28,\mathrm{USDT}
$$
**Step 2 – Fee Cap Check**
$$
150 \times 1 \times 0.10 = 15,\mathrm{USDT}
$$
Actual applied fee = 0.28 **USDT per trade**.
**With 25% Click discount:**
$$
0.28 \times (1 - 0.25) = 0.21,\mathrm{USDT}
$$
#### **Example B – Open Call and Expire ITM**
| Parameter | Value |
| ---------------- | ------------ |
| Index price | 111,000 USDT |
| Strike | 110,000 USDT |
| Settlement Price | 115,000 USDT |
| Option Price | 150 USDT |
| Contract Size | 0.01 BTC |
| Quantity | 10 |
**Step 1 – Trading Fee (entry)**
$$
111{,}000 \times 10 \times 0.01 \times 0.00025 = 2.78,\mathrm{USDT}
$$
**Step 2 – Exercise Fee (ITM only)**
$$
\mathrm{ExerciseFee} =
\min!\
(\mathrm{ExercisePL} \times \mathrm{ExerciseRate}, \mathrm{Quantity } \times OptionPrice \times MaxCapRate)
$$
$$
\mathrm{ExerciseFee} =
\min!\
((115,000-111,000) *0.01*10)\mathrm{} \times \mathrm{0.0025}), \mathrm{10 } \times 150 \times 0.1) = \min!\
(1,150) = 1 {USDT}
$$
Total Fees = 2.78 + 1 = 3.78 **USDT**
**With 35% Click discount:**
$$
3.78 \times (1 - 0.35) = 2.46,\mathrm{USDT}
$$
---
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