6 minute read
Does MEXC Charge Interest on Futures? What You Need to Know
from MEXC
by Exness_India
If you're trading on MEXC and considering futures, one of the first questions that naturally comes up is: Does MEXC charge interest on futures?
The short answer is: No, MEXC does not charge traditional interest on futures contracts.However, the platform may apply funding fees, trading fees, and other associated costs depending on the type of futures product you use.
Let’s break that down in detail so you can understand exactly what you’re paying—and when.
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Understanding Futures Trading on MEXC
Before diving into the cost structure, it’s essential to understand the basics of how futures work on MEXC.
MEXC offers two main types of futures products:
USDT-M Futures (Stablecoin-margined)
COIN-M Futures (Crypto-margined)
These are perpetual contracts, meaning they don’t have an expiration date like traditional futures. Because of this, the mechanism to keep contract prices in line with the spot market differs—and that’s where funding fees come in.
Now, let’s clarify the key difference between interest charges and funding rates.
Interest Charges vs. Funding Fees: What’s the Difference?
When people ask, “Does MEXC charge interest on futures?”, they often confuse interest (as in borrowing rates on margin) with funding fees.
Here’s the difference:
Interest charges are typically associated with margin trading or borrowing funds, where you pay an annual or daily percentage to borrow crypto assets.
Funding fees, on the other hand, are a mechanism used in perpetual futures to balance the price between the contract and the spot market. These fees are paid between traders, not to the exchange.
So, when trading futures on MEXC, you do not pay interest to MEXC. Instead, you might pay or receive funding fees, depending on market conditions.
How Do Funding Fees Work on MEXC Futures?
Funding fees on MEXC follow the same logic as other major crypto futures platforms like Binance or Bybit.
Here’s how it works:
MEXC applies a funding rate every 8 hours (usually at 00:00, 08:00, and 16:00 UTC).
If the funding rate is positive, long position holders pay shorts.
If it’s negative, shorts pay longs.
The actual rate varies depending on market conditions—typically between -0.01% and 0.01% but can go higher in volatile periods.
This fee helps to keep the perpetual futures price in line with the actual spot price of the asset. It’s not charged by MEXC, but rather exchanged between traders.
So again: MEXC does not profit from funding fees, and it’s not an interest fee.
Does MEXC Charge Any Hidden Costs on Futures?
While there's no interest rate, that doesn't mean futures trading on MEXC is free. Here are the actual costs involved:
1. Trading Fees
MEXC charges a maker-taker model:
Maker Fee: 0.00% (for adding liquidity)
Taker Fee: 0.02% (for removing liquidity)
These fees are very competitive compared to most other exchanges and are applied every time you open or close a trade.
2. Funding Fees
As explained earlier, you may pay or receive funding fees every 8 hours if you hold positions during those intervals.
3. Liquidation Fees
If your position is liquidated, MEXC may apply an auto-deleveraging (ADL) fee or partial loss due to market volatility. While not a “fee” per se, it's an important cost to consider.
4. Leverage-Related Risks
While MEXC offers up to 200x leverage on some futures pairs, there’s no interest on the borrowed amount, which is different from margin trading. However, higher leverage means a higher risk of liquidation.
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What About Margin Trading on MEXC? (Where Interest Is Charged)
If you were thinking of spot margin trading—not futures—then yes, MEXC does charge interest.
In margin trading:
You borrow USDT or crypto from the platform.
You are charged an hourly or daily interest rate (displayed before confirming the loan).
Rates vary by token and market conditions.
But that’s not futures. Futures don’t involve borrowing funds from MEXC. You use margin collateral (USDT or crypto), and leverage is synthetic.
Who Pays Funding Fees, and How to Avoid Them?
If you close your position before the funding time, you avoid paying or receiving the funding fee entirely. This is a common strategy among short-term or scalping traders.
Here’s how you can avoid funding fees:
Exit your position before the 8-hour funding window.
Trade shorter timeframes or scalp the market.
Switch between long and short if you see funding is too costly.
MEXC even shows the next funding rate and countdown timer directly in the futures trading interface, so you always know what to expect.
Are MEXC’s Funding Rates Higher Than Other Exchanges?
In general, MEXC’s funding rates are comparable to other major exchanges like Binance or Bybit. Since the rate is calculated based on the difference between the perpetual and spot price, and open interest balance, it changes across pairs.
Popular pairs like BTC/USDT or ETH/USDT tend to have lower, more stable funding rates.
More exotic or volatile pairs (like meme coins or low-cap altcoins) can experience spikes in funding fees when the market gets overly bullish or bearish.
But again, this isn’t a charge from MEXC—it’s a peer-to-peer mechanism.
Summary: Does MEXC Charge Interest on Futures?
To summarize everything clearly:
❌ No, MEXC does not charge interest on futures positions.
✅ Instead, there may be funding fees—a peer-to-peer mechanism between long and short traders, applied every 8 hours.
✅ MEXC charges maker-taker trading fees (0.00% / 0.02%) when opening or closing trades.
✅ No borrowing from MEXC occurs in futures, so no interest fees apply.
✅ Interest fees are only relevant in margin trading, which is separate from futures.
Final Thoughts: What Should You Watch Out For?
While MEXC futures don’t come with interest charges, you should still be aware of:
Funding rate fluctuations: Especially during high volatility.
Liquidation risks: Using high leverage increases the chance of a total loss.
Trading fees: Small per trade, but they add up if you’re active.
The platform is transparent about these costs and displays them clearly in the trading interface. You won’t be caught off guard if you know what to look for.
Is MEXC a Good Choice for Futures Traders?
Yes—especially if you're looking for:
High leverage (up to 200x)
Low fees
No interest on positions
Wide range of altcoin futures
User-friendly interface
Just remember: futures are high-risk products, and the lack of interest charges doesn’t mean they’re risk-free.
Use stop-losses, pay attention to funding rates, and don’t trade more than you can afford to lose.
Final Answer to the Question
Once again, in plain terms:
No, MEXC does not charge interest on futures contracts.Instead, it uses funding fees—which are exchanged between traders to keep prices in line with the spot market.You may also pay trading fees, but there is no borrowing interest like you’d find in margin trading.
Want to Avoid Fees Altogether?
If you're a very short-term trader, consider:
Closing trades before funding time
Using limit orders to avoid taker fees
Trading low-volatility pairs with minimal funding impact
This way, you can minimize your costs and make the most of MEXC's low-fee futures environment.
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