Time to Maturity
The time to maturity influences the fee coefficient used in calculations.
This coefficient adjusts fees based on how close the contract is to its expiration, ensuring that fees remain proportional over time. The closer to expiration, the lower the fees will be.
The coefficient is the key factor in this calculation. As the time to maturity decreases, the coefficient decreases, resulting in lower fees for shorter-term contracts.
As we already explained before, Time Coefficient = Seconds to maturity รท Seconds per Year
Itโs easy to understand that time to maturity directly affects the fees calculation. Later in this section, we will see how the fees change as the time to maturity changes.
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