What Are Perpetual Contracts?
Perpetual contracts (perps) are futures contracts without an expiration date. Unlike traditional futures that expire monthly or quarterly, perps let you hold positions indefinitely. They're the most popular crypto derivative, accounting for 70%+ of all crypto trading volume.
Key Features
No expiry: Hold as long as you wantLeverage: Up to 125x on major exchangesBoth directions: Go long (buy) or short (sell)Funding rate: Periodic payment to keep price aligned with spotUSDT-settled: Most perps settle in USDT (not the underlying asset)Perpetual Contract Fee Structure
Trading Fees (Where Cashback Applies)
ExchangeMakerTakerAfter 20% CB (Maker)After 20% CB (Taker)
Binance0.020%0.050%**0.016%****0.040%**
Bybit0.020%0.055%**0.016%****0.044%**
OKX0.020%0.050%**0.016%****0.040%**
MEXC**0.000%****0.010%****0.000%****0.008%**
Bitget0.020%0.050%**0.016%****0.040%**
Detailed fee comparison: exchange cashback comparison
Funding Rate (No Cashback)
Funding rates are not trading fees — they're peer-to-peer payments:
Positive funding (>0%): Longs pay shortsNegative funding (<0%): Shorts pay longsTypically ranges from -0.01% to 0.03% per 8 hoursPaid 3 times per day (every 8 hours)Important: Funding rate payments do NOT qualify for cashback. However, managing funding rates is crucial for overall profitability.
The True Cost of Perp Trading
A perp trader's total cost includes:
```
Total Cost = Trading Fees + Funding Costs - Cashback
```
Example: $100K Position, 1-Day Hold
Entry fee (taker, 0.05%)$50$40
Exit fee (taker, 0.05%)$50$40
**Total****$130****$110**
**Cashback earned****$20**
Cashback saves $20 on a single round-trip. Over 250 trading days, that's $5,000/year saved.
Maximizing Perp Cashback
Strategy 1: Use Maker Orders
Order TypeFeeAfter CBvs. Standard Taker
Market (taker)0.050%0.040%Baseline
Limit (maker)0.020%**0.016%****60% cheaper**
Place limit entries at support levels and limit take-profits at resistance.
More: maker-taker fees explained
Strategy 2: Choose the Right Exchange
For lowest perp fees, MEXC is unbeatable at 0% maker / 0.01% taker.
For best overall experience, Bybit offers strong liquidity + copy trading + VARA/CySEC regulation.
Guide: MEXC fee rebate
Strategy 3: Manage Funding Rates
Check funding rate before opening positionsAvoid opening longs when funding is extremely positive (>0.05%)Consider funding rate farming on funding-negative pairsClose positions before 8-hour funding settlement if funding is against youStrategy 4: Optimize Position Size
Cashback is calculated on the notional value of the trade, not your margin:
MarginLeveragePositionFee (0.05%)CB (20%)
$1,00010x$10,000$5.00$1.00
$1,00020x$20,000$10.00$2.00
$5,00010x$50,000$25.00$5.00
$10,00010x$100,000$50.00$10.00
Higher leverage = higher notional = more cashback (but also more risk).
More: spot vs futures cashback
Annual Savings by Trader Type
Trader TypeMonthly VolumeStrategyAnnual CB
Professional$5MMaker-heavy$4,800
High-frequency$50MMaker$24,000
Getting Started with Perp Cashback
Visit cashback.dayRegister on your preferred exchangeOpen USDT perpetual positionsUse limit orders when possibleReceive 20% cashback weekly in USDTKey Takeaways
Perp trading fees qualify for 20% lifetime cashback via cashback.dayFunding rates do NOT qualify (they're peer-to-peer, not exchange fees)MEXC has the cheapest perp fees (0% maker, 0.01% taker)Maker orders + cashback = 71% fee reduction vs standard takerCashback is calculated on notional value, so leverage amplifies itGet 20% Perp Trading Cashback →
Related: Bybit USDT cashback | 7 methods to lower fees | USDT cashback guide
Start earning cashback now!
Register via cashback.day link — earn permanent cashback on every trade
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