Maker-Taker Fee Schedule

A maker-taker fee schedule is a pricing model used by electronic trading venues to differentiate between participants who provide liquidity and those who remove it. Makers are traders who place limit orders that rest on the order book, thereby adding depth and creating opportunities for others to trade.

Takers are traders who place market orders that immediately execute against existing orders, thereby removing liquidity from the book. Exchanges typically charge lower fees or provide rebates to makers, while charging higher fees to takers to compensate for the service of liquidity provision.

This structure is essential for maintaining a healthy order book in cryptocurrency and derivatives markets. It encourages the submission of limit orders, which narrows the bid-ask spread and reduces market volatility.

By incentivizing makers, exchanges ensure that there is always a counterparty available for traders looking to execute large positions quickly.