There are three potential costs when trading Spot Margin on Coinmerce. You'll always see the exact rates on the trade confirmation screen before opening a position, but here's how each one works in detail.
1. Borrowing fee
This is the cost of borrowing the asset you're shorting. It's charged every 4 hours for as long as your position is open.
Rate: Varies by asset and market conditions
Charged on: The notional value of the borrowed crypto
When deducted: From your collateral when you close the position (or are liquidated)
Why every 4 hours?
Crypto markets are 24/7. The 4-hour cycle aligns with industry-standard funding intervals, keeping the product responsive to market conditions without the noise of hourly charges.
How fees compound
A borrowing fee of, say, 0.05% per 4 hours sounds small — but it adds up:
Position duration | Number of charges | Cumulative cost (at 0.05% per 4h) |
1 day | 6 | 0.30% |
1 week | 42 | 2.10% |
1 month | ~180 | ~9.0% |
⚠️ Long-held shorts can erode your profit. If your thesis takes weeks to play out, factor in the fee drag — a 5% favourable price move over a month could be wiped out by borrowing costs.
The example rate above is illustrative. Always check the live rate on the trade confirmation screen.
Where to see the live rate
The trade confirmation screen shows the current borrowing fee for the asset before you open the position. The public Fee Schedule also lists current rates per asset.
2. Exchange fee
A standard fee charged when you voluntarily close your position.
Charged on: The buyback transaction
No fee on opening: You don't pay an exchange fee to open a short
Same rate as regular Coinmerce trading: Aligned with your standard fee tier
3. Liquidation fee
This fee only applies if the system automatically closes your position because your Position Risk Ratio dropped below the critical threshold.
Fixed percentage of the position size
Higher than the standard exchange fee to reflect the operational cost and risk of forced closure
Best avoided by closing voluntarily before liquidation triggers
How fees affect your displayed P&L
Your live Estimated P&L in the Margin Account is shown after fees, so what you see is what you'd actually walk away with if you closed right now. Fees are accrued continuously and deducted at close.
Worked example: full cost breakdown
You short €5,000 of BTC for 3 days at a 0.05% per 4-hour borrowing rate. BTC drops 5%.
Item | Amount |
Gross profit (5% on €5,000) | +€250.00 |
Borrowing fees (3 days × 6 × 0.05% × €5,000) | −€45.00 |
Exchange fee on close (assumed 0.25%) | −€11.88 |
Net profit | ≈ €193.12 |
A 5% favourable move turned into roughly a 3.86% net return on your collateral after fees. Fees matter — read them on the confirmation screen before you click open.
Tips to manage fee impact
Close positions you no longer need. A neutral position still costs you borrowing fees every 4 hours.
Trade with a clear thesis and timeline. If you don't expect a meaningful move within days, the fee drag may not be worth it.
Compare assets. Borrowing rates vary — sometimes significantly — across assets. The same directional view on a cheaper-to-borrow asset can be a better trade.
Watch for rate changes. Market conditions can shift borrowing rates. The rate you opened at is a starting point, not a guarantee.
Next steps
Read Liquidation and the Position Risk Ratio to understand when the liquidation fee can apply
See the public Fee Schedule for current per-asset rates