Definition
A rebate in crypto trading commonly refers to a fee refund or an incentive credited after qualifying activity. A maker rebate may reward liquidity provision, while a referral rebate may depend on fees generated by referred users. These arrangements differ from a fee discount applied directly before a charge is collected.
How It Works
The calculation depends on the program’s eligible base. For example, a hypothetical 20% refund on 10 units of qualifying fees returns 2 units; it does not refund 20% of the traded principal. A negative maker fee instead expresses an incentive as a percentage of eligible executed notional. Credit timing and payment asset can vary.
Key Considerations
Not every maker receives a rebate, and promotional credits may have expiry or usage restrictions. Rebate income does not eliminate spread, slippage, or trading losses. Compare the net cost after all conditions, and distinguish a transferable cash-equivalent credit from a bonus that can only offset selected platform charges.