How Bybit crypto options fees, margin and settlement work

If you've already placed your first options trade on Bybit, or you're about to, you've likely noticed that options involve more moving parts than a standard spot order. What fees apply when you open a position? What happens at expiration if you forget to close? And why does selling an option require margin when buying one doesn't?

If you only remember one thing, remember this: long options have simpler costs (you pay the premium and trading fee, then you're done), while short options require ongoing margin and can be liquidated if the market moves against you.

Key Takeaways:

• Options trading on Bybit involves three distinct fee types — trading, delivery and liquidation — each triggered at a different point in the trade lifecycle.

• For long options, buyers pay the premium and trading fee when opening the position, then face no ongoing maintenance margin.

• All in-the-money options are automatically exercised at 8:00 AM UTC on expiration day. Closing orders cannot be placed during the settlement window.

What fees do you pay when trading options on Bybit?

Unlike spot trading, where a single maker/taker fee covers most scenarios, options trading on Bybit involves three separate fee types. Each one applies at a different stage of a trade's life.

The trading fee is the baseline cost every trader pays when entering or exiting a position. The delivery fee only applies if your option expires ITM and is automatically exercised. The liquidation fee is charged when a short seller's maintenance margin falls below the required level and Bybit's risk engine closes the position. Long option buyers are never subject to liquidation.

For a full walkthrough of how to place options orders on the platform, see Bybit's options trading guide.

How are options trading fees calculated?

Before looking at the formula, the idea is simple: Bybit compares the normal maker/taker fee with a fee cap, then charges the lower amount. This prevents low-premium options from being charged a fee that is disproportionately large relative to the option price.

At the standard VIP 0 tier, the rates are:

• Maker rate: 0.02% of the index price

• Taker rate: 0.03% of the index price

• Fee cap: 7% of the option price per contract

Trading fee = min(fee rate × index price, 7% × option price) × position size

Worked example: BTC call, taker rate

• Size: 0.3 BTC

• Index price: $110,000

• Option price (premium): $3,000

Trading fee = min(0.03% × $110,000, 7% × $3,000) × 0.3= min($33, $210) × 0.3 = $9.90 USDT per side

The normal taker fee is lower than the cap, so the cap does not apply. The cap becomes relevant on deep OTM options where the premium is very small.

How do delivery fees work?

A delivery fee only matters if your option expires ITM and is automatically exercised. If it expires worthless, you pay nothing additional at expiry. (You may already have paid trading fees when entering, but no new fee applies.)

The logic mirrors the trading fee: Bybit compares the base delivery rate with a cap, then charges the lower amount.

Delivery fee = min(basic delivery fee rate × index price, 12.5% × (estimated delivery price − strike price)) × position size

The basic delivery fee rate is 0.015% for BTC and ETH, and 0.02% for SOL, MNT, XRP and DOGE. The estimated delivery price is calculated between 7:30 and 8:00 AM UTC on the expiration date based on the BTC spot index price.

One important exception: daily options do not incur delivery fees.

Worked example: BTC call delivery fee

• Strike price: $110,000

• Position size: 0.3 BTC

• Index price at expiry: $111,000

Delivery fee = min(0.015% × $111,000, 12.5% × ($111,000 − $110,000)) × 0.3= min($16.65, $125) × 0.3 = $4.995 USDT

The base fee is lower than the cap, so it applies directly. The cap protects traders on options that barely finished ITM, where even a small percentage of the index price could eat into most of the profit.

When can liquidation happen?

Selling an option requires you to post maintenance margin because your potential loss as a seller is significantly larger than the premium you received. If your account equity drops below the required maintenance margin, Bybit's risk engine may liquidate your short position before expiration.

When liquidation occurs, a fee is charged on top of any trading loss. The formula uses the same min() pattern:

Liquidation fee = min(0.2% × index price, 7% × option traded price) × position size

Worked example: BTC short call liquidation

• Position size: 0.1 BTC

• Index price at liquidation: $112,000

• Option traded price: $3,000

Liquidation fee = min(0.2% × $112,000, 7% × $3,000) × 0.1= min($224, $210) × 0.1 = $21.00 USDT

Here the cap applies because 7% of the option price ($210) is lower than the base liquidation fee ($224).

Once you pay the premium and the opening trading fee, your maximum market loss is limited to the premium. No maintenance margin is required, so liquidation cannot occur.

How margin works for options

Buyers have capped downside: their worst outcome is losing the premium. Sellers face theoretically unlimited loss on short calls and large potential losses on short puts. This asymmetry is why Bybit requires sellers to hold margin throughout the life of the contract.

Why short options require maintenance margin

Maintenance margin (MM) is the minimum balance required to keep a short position open. If your account drops below this level, liquidation is triggered.

In plain English: Bybit takes the larger of two risk-based margin amounts, adds the option's current mark price as a buffer, adds a liquidation fee reserve, then multiplies by your position size.

Position MM = [max(MM factor × index price, MM factor × option mark price) + option mark price + liquidation fee rate × index price] × position size

Worked example: BTC short call MM

• Short 1 BTC in a BTCUSDT call option

• BTC index price: $30,000

• Option mark price: $300

• MM factor (BTC): 3%

Position MM = [max(3% × $30,000, 3% × $300) + $300 + 0.2% × $30,000] × 1= [$900 + $300 + $60] × 1 = $1,260 USDT

With a margin balance of $10,000, the account MM% is 12.6%. As long as the balance stays above $1,260, the position remains open.

How much margin do you need to open a short option?

Initial margin (IM) uses a similar risk-based calculation but applies when opening a short position. Because it incorporates additional factors such as how far the option is out of the money, it is generally higher than maintenance margin.

Position IM = max([max(max IM factor × index price − OTM amount, min IM factor × index price) + max(entry price, mark price)] × position size, position MM)

Deeper OTM options require less initial margin because they are less likely to be exercised. For the full calculation methodology and worked examples, see Bybit's margin calculations help article.

Margin for buyers

When buying an option, your initial margin is simply the premium plus the trading fee. No maintenance margin is required after the order fills, and no liquidation can ever occur.

Order IM (buy to open) = premium + trading fee

What this means for you

For most beginners, the key point is not memorizing every margin formula. It's understanding that short options require ongoing margin, and that this margin can rise as the market moves against the position. If you sell options, you need to monitor your margin balance and be prepared to add funds or close the position before liquidation is triggered.

Margin factors by underlying asset

The table below helps explain why some contracts require more margin than others. Beginners don't need to memorize these factors.

These factors are periodically updated. Check the margin parameters page for the latest values.

Which P&L number are you looking at?

Bybit displays different P&L figures depending on whether your position is still open, was closed early or went through delivery at expiry. This matters because each figure accounts for different costs.

Unrealized P&L (open position)

Your current gain or loss based on the mark price, before any fees.

• Long option: (mark price − average entry price) × position quantity

• Short option: (average entry price − mark price) × position quantity

Example: Ann buys 0.1 BTC of a BTCUSDT call at $3,500. The mark price rises to $4,500.

Unrealized P&L = ($4,500 − $3,500) × 0.1 = 100 USDT

Closed P&L (early exit)

What you actually realized by exiting before expiry, including trading fees on open and close.

• Long option: (traded price − average entry price) × traded quantity − trading fees (open + close)

• Short option: (average entry price − traded price) × traded quantity − trading fees (open + close)

Example: Bob sells 0.3 BTC of a BTCUSDT call at $2,600, then closes at $2,400. Index price: $44,000 (open), $44,900 (close).

Closed P&L = ($2,600 − $2,400) × 0.3 − ($44,900 × 0.3 × 0.03%) − ($44,000 × 0.3 × 0.03%)= $60 − $4.04 − $3.96 = $52.00 USDT

Delivery P&L (at expiry)

The most complete P&L figure, including premium, trading fee and delivery fee.

• Long call: max(delivery price − strike price, 0) × quantity − premium paid − trading fee − delivery fee

• Long put: max(strike price − delivery price, 0) × quantity − premium paid − trading fee − delivery fee

• Short call: premium received − max(delivery price − strike price, 0) × quantity − trading fee − delivery fee

• Short put: premium received − max(strike price − delivery price, 0) × quantity − trading fee − delivery fee

Example: Ann buys 0.1 BTC of a BTCUSDT call, strike $48,000, entry price $3,500. Index at entry: $44,900. Delivery price: $52,000.

Intrinsic value = max($52,000 − $48,000, 0) × 0.1 = $400Premium paid = $3,500 × 0.1 = $350Trading fee = min(0.03% × $44,900, 7% × $3,500) × 0.1 = $1.35Delivery fee = min(0.015% × $52,000, 12.5% × ($52,000 − $48,000)) × 0.1 = $0.78Delivery P&L = $400 − $350 − $1.35 − $0.78 = $47.87 USDT

If the option expires OTM, the max() function returns zero and your delivery P&L equals the negative of your premium plus the trading fee.

How to compare these numbers

Unrealized P&L looks the most optimistic because it excludes all fees and premium. Delivery P&L is the most comprehensive because it includes the premium and all applicable fees. When evaluating whether a trade was profitable, closed P&L or delivery P&L is what matters.

Full P&L methodology is documented in Bybit's P&L calculations help article.

Understanding settlement at expiration

All Bybit options are European-style, meaning they can only be exercised at expiration — not before. You cannot exercise early to capture intrinsic value, but you can always sell your option on the market before expiry to close the position and avoid delivery fees.

At 8:00 AM UTC on expiration day, all open positions are assessed:

• ITM options are automatically exercised. P&L is credited or debited to your Unified Trading Account and the position is removed.

• OTM options expire worthless. No action is required and no delivery fee is charged.

Important: Closing orders cannot be placed during the settlement window. If you want to exit rather than be exercised, close before the window opens.

Common mistakes beginners make

Treating the premium as the total exposure for sellers. For buyers, the premium is the maximum loss. For sellers, it is the maximum gain. Actual losses can be much larger.

Forgetting delivery fees eat into slim profits. A slightly ITM option that looks profitable on paper can net less than expected once the delivery fee is applied. Holding a profitable option to expiry isn't always the best choice either: selling before expiry may let you capture remaining time value while avoiding the delivery fee entirely.

Misunderstanding maintenance margin as a one-time cost. Margin for short positions fluctuates with the index price and mark price. As the underlying moves, your required margin changes and can trigger liquidation if you're not monitoring your account.

Assuming long options can be liquidated. They cannot. Once you've paid the premium, no further action is required and no liquidation event can occur.

The bottom line

Long option buyers pay the premium and trading fee upfront, with no ongoing maintenance margin. If the option expires ITM, a delivery fee may also apply. Short option sellers must maintain margin throughout the life of the contract and remain exposed to liquidation risk.

Use the formulas in this article to verify your expected P&L before entering any position and account for all three fee types in your calculations. Always check the current fee schedule before trading to ensure you're working with up-to-date rates.

Ready to put this into practice? Return to Bybit's options trading guide to review the full trading workflow, or head directly to the Bybit Options page to start trading.

FAQ

Do I always pay a delivery fee?

No. A delivery fee is only charged if your option expires ITM and is automatically exercised. If it expires OTM, no delivery fee applies. Daily options are also exempt regardless of whether they expire ITM.

Can long options be liquidated?

No. Your maximum loss is the premium paid. No further margin is required after purchase and no liquidation can occur.

Why can't I close my option during settlement?

Bybit suspends closing orders during the settlement window to allow accurate index pricing and automated exercise calculations. Close before 8:00 AM UTC on expiration day if you want to exit without automatic exercise.

Does Bybit automatically exercise profitable options?

Yes. All ITM options are automatically exercised at 8:00 AM UTC on expiration day. If you'd rather sell on the market to capture remaining time value and avoid the delivery fee, close before the settlement window opens.

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