Gemini features a fee schedule that gives consumers a low price for their interactions, with some transactions limiting their fees to 0% for liquidity-making trades. However, for transactions that come with a profit, consumers will still only be charged a 0.10% fee. To determine the fee rate for a trading pair, the user has to consider their gross trading volume available over the course of a 30-day trailing window. Since this is based on the most recent 30 days, the rate is recalculated nightly.
Maker vs. Taker
To understand Gemini fee schedule, investors should understand the process that goes into the orders. There are two orders associated with each trade – one that gives liquidity and one that removes liquidity. Buying or selling to add liquidity is considered liquidity-making, and the consumer that is in charge of placing the order is called the maker.
Alternatively, when a buy or sell order trades against what is logged in the order book, it removes liquidity and is considered “liquidity taking.” Whoever places the order is called a taker. There are many incentives to create a liquidity-making order, but the big risk is that they will not be filled on the order immediately.
As these transactions take place, they are subject to fees that are paid out to the taker, the maker, and the auction. The fee goes down as the order is initiated for higher amounts. For instance, a transaction for about $25,000 will come with a 0.75% fee for each of the parties, while a transaction involving over $15 million will only elicit a $0.10% fee.