Pi42 Options Trading Fees Explained

Pi42 offers USDT Options, which are settled in INR. When trading options, you may encounter three types of fees: trading fees, delivery fees, and liquidation fees.

The following example demonstrates these fees using USDT Options.

Trading Fee: 

Note: The trading fee for a single contract will never exceed 12.5% of the option price. The fees mentioned above apply to non-VIP users. 

Calculation

Trading Fee Calculation:
The trading fee is calculated as the lesser of the following two values:

1. Taker/Maker Fee Rate × Index Price

2. Maximum Allowed Percentage of Order Price × Option Traded Price

Then, multiply the lesser value by the Option Traded Size.

Formula:

Trading Fee: Minimum of {(Taker/Maker Fee Rate × Index Price), (Maximum Proportion of Order Price × Option Traded Price)} × Option Traded Size

Example:
Suppose Anuj places the following options trade:

• Option Type: Call

• Strike Price: $95,000

• Order Size: 0.3 BTC

• Expiry Date: September 31, 2025

• Underlying Asset: BTC

• Order Type: Limit Order (Maker Fee)

At the time of the trade, the BTC index price was $92,000. Anuj buys a call option for 0.3 BTC at a price of $3,000 per BTC.

Here’s how the trading fee is calculated:

Trading Fee: Minimum (0.02% × 92,000, 12.5% × 3,000) × 0.3
= Minimum (18.4, 375) × 0.3
= 5.52 USDT

Note: 18% GST will be applied to the trading fee as per applicable government regulations.
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Delivery Fee: Delivery fees are applicable when an option is exercised.

For example, in the case of a call option, if the settlement price of the underlying asset is higher than the strike price, the option will be exercised. The buyer receives the profit from the option, and the seller is required to deliver the asset. In this scenario, both the buyer and the seller are charged a delivery fee.

If the option is not exercised, no delivery fee is charged.

Notes: 

• The delivery fee for a single contract can not be higher than 12.5% of the Option’s value. 

• Daily Options do not incur delivery fees.

 
Delivery Fee Calculation For Call Options Formula:

Delivery Fee: MIN {Basic Delivery Fee Rate × Index Price, Maximum Allowed Percentage × (Estimated Delivery Price − Strike Price)} × Position Size

Example: If Anuj places the following options order : 

• Option Type: Call

• Underlying: BTC

• Strike Price: $105,000

• Traded Size: 0.3 BTC

• Expiry Date: October 31, 2025

• Estimated Delivery Price: $106,050

At expiry, the BTC index price is $106,000. Anuj exercises his call option. The delivery fee is calculated as follows:

Delivery Fee: MIN [0.015% × 106,000, 12.5% × (106,050 − 105,000)] × 0.3
= MIN [15.9, 131.25] × 0.3
 = 4.77 USDT

Note: An 18% GST will be applied to the delivery fee as per government regulations. The estimated delivery price is determined based on the BTC index price between 1:00 PM and 1:30 PM IST on the expiration date.
For Put Options:
Formula:
Delivery Fee: MIN {Basic Delivery Fee Rate × Index Price, Maximum Allowed Percentage × (Strike Price − Estimated Delivery Price)} × Position Size

Example: Aastha places following order : 

• Option Type: Put

• Underlying: BTC

• Strike Price: $102,000

• Traded Size: 0.3 BTC

• Expiry Date: October 31, 2025

• Estimated Delivery Price: $99,050

At expiry, the BTC index price is $100,000. Bob exercises his put option. The delivery fee is calculated as follows:

Delivery Fee: MIN [0.015% × 100,000, 10% × (102,000 − 99,050)] × 0.3
= MIN [6, 295] × 0.3
= 1.8 USDT

Note: An 18% GST will be applied to the delivery fee as per government regulations. The estimated delivery price is determined based on the BTC index price between 1:00 PM and 1:30 PM IST on the expiration date.

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Liquidation Fee: In options trading, additional fees will be charged for liquidations.

Calculation Formula : Liquidation Fee = Liquidation Fee Rate × Option Traded Size × Index Price

Example: 

Take the following option: Raj sells the following option. 

• Type: Call

• Strike Price: $97,000

• Traded Size: 0.3 BTC

• Expiration Date: September 31, 2025

• Underlying: BTC

If the BTC index price rises to $102,000, he needs to replenish the $300 margin to maintain the position. However, he has insufficient available balance. The position will therefore be liquidated.

In this case, the liquidation Fee will be based on the following calculation:

Liquidation Fee: 0.2% × 0.3 × 102,000 =  61.2 USDT

Note: The liquidation fee is automatically added to the insurance fund after deducting the trading fee.