> For the complete documentation index, see [llms.txt](https://docs.clickoptions.ai/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.clickoptions.ai/trade/fees-and-commissions.md).

# 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{Exercise P/L},
\ 10% \times \text{Option Value}
\right)
$$

* **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** section.

### **3. CLICK Fee Discount**

Eligible platform commissions can be settled in **CLICK** at a **disclosed discount**. The discount schedule will be confirmed before listing and published in the CLICK Tokenomics Paper.

$$
\mathrm{DiscountedFee} = \mathrm{Fee} \times (1 - \mathrm{DiscountRate})
$$

Where:

* *Fee* = Trading or Exercise Fee (in USDT)
* *Discount Rate* = the disclosed CLICK fee discount

> Paying eligible commissions in CLICK is one of the token’s core utilities. See the **Token Utility and Policy** section for details. Fee tiers may improve net execution economics but do not guarantee profitable arbitrage.

### **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:** 0.01%
* **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** (below the cap).

#### **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)**

Exercise P/L = (115,000 − 110,000) × 0.01 × 10 = 500 USDT.

$$
\mathrm{ExerciseFee} =
\min!\left( 500 \times 0.0001,\ \ 10 \times 150 \times 0.10 \right)
\= \min(0.05,\ 150) = 0.05,\mathrm{USDT}
$$

Total Fees = 2.78 + 0.05 = 2.83 **USDT**.

> A disclosed CLICK fee discount applies where eligible commissions are settled in CLICK; the schedule is confirmed before listing.


---

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