Hi,
I’m interested in trading BLVT’s in the spot market. No subscription/redemption, only trading them.
I need someone to shed some light on the associated fees to trading them on the spot market.
So that I do my calculations for setting the LIMIT prices right without leaving space to surprises.
I’ve understood that (1) the regular spot trading fees would be applied, as with regular tokens.
(2) there’s an additional daily maintenance fee of 0.01%.
(3) plus a funding fee. That depends on the funding rate, which I noticed is constantly varying.
I’m wondering how would (2) and (3) impact my position in a certain BLVT I’d buy/sell in the spot market.
The documentation says the following:
iv. Management fees: A daily management fee of 0.01% will be charged at 00:00 UTC and reflected directly in the net asset value of the leveraged tokens;
So if it is directly reflected in the NAV of the LT. I undestand that it doesn’t represent an extra commission/fee (similar to trading fee) I need to take into account in my calculations. Right?
However, for (3):
v. Funding fees: Funding fees are paid (or paid to) the underlying fund based on the funding rate and reflected directly in the net asset value of the Leveraged tokens. Binance takes no fees for funding rate transfers; these are directly between traders.
How and when do they get applied?
May I consider that, as long as they’re directly reflected in the NAV, like (2), they do not represent an additional commission/fee I need to take into account (in my prior calculations ) when buying/selling the BLVT’s ?
Thanks.