Maker-Taker Fee Model
A fee structure charging a lower (or rebated) rate to orders that add liquidity and a higher rate to orders that remove it.
The maker-taker fee model charges a lower fee — sometimes even a rebate — to maker orders (see Kaavon's "Maker Order" glossary definition) that add liquidity to an order book, and a higher fee to taker orders (see Kaavon's "Taker Order" glossary definition) that remove existing liquidity by filling immediately.
This fee structure exists specifically to incentivize market makers to keep an order book populated with resting orders, since deeper liquidity benefits every other trader using that market.
Examples
- A trader placing a limit order that doesn't fill immediately generally pays the lower maker fee, while a market order filling immediately pays the higher taker fee.
- The maker-taker fee model's lower maker fee is a direct financial incentive for keeping an exchange's order book populated with resting liquidity.
Learn more
Maker Order
Read the Maker Order glossary definition
Taker Order
Read the Taker Order glossary definition
Post-Only Order
Read the Post-Only Order glossary definition
Basis Points (bps)
Read the Basis Points (bps) glossary definition
Market Taker
Read the Market Taker glossary definition