The trader is always charged with the standard commission of the Binance exchange, which in most cases is equal to 0.1% of the volume of executed orders.
The reduction in commission is carried out through the return of part or all of the commission in NMX tokens.
This mechanism for reducing commissions is called cashback.
Cashback is credited at the moment of transaction confirmation and takes into account the following data for the last day: the volume of your trades, the number of commissions paid, and the amount of commission reduction.
In the form of a cashback, the amount by which the commission should have been reduced is returned to you.
Cashback pool
The cashback is paid from the daily distributed NMX token pool and accounts for 10% of the total pool. The cashback pool is shared between CEX and DEX. The cashback pool is limited and is calculated/allocated daily at 00:00 UTC.
The cashback pool is distributed among traders for completed transactions until the pool is completely depleted. When the cashback pool is depleted, the return of cashback is suspended until the next calculation/allocation.
>>> The rest of the cashback is not transferred to the next day's pool.
The size of the daily cashback pool is displayed on the exchange page in the trading section, and also shows the current balance at the current moment.
Example 1.
Over the past day, you paid 100 USDT in commissions. But at the same time, you have reduced commissions by a combination of different methods by 80%. This means that the cashback amount will be equal to 80% of the already withheld commissions, that is, 80 USDT. To calculate the number of NMX tokens to be paid for cashback, the current rate of the NMX token is used. For example, if the NMX rate is 2 USDT, then the cashback amount will be equal 40 NMX.
To learn more about ways to reduce trading commissions, read the article here.
Differences in the initial withheld commission and subsequent cashback accruals, depend on whether you have the option to “pay commission with NMX tokens” enabled or not.
Let's take a closer look at each of them:
1️⃣If the option to pay a commission with NMX is off:
1. We charge the standard base commission in the currency of the pair.
2. When the trading day changes, we will compensate your discount on trading commissions in the form of cashback accrual.
You can read how to enable the option to pay commissions with NMX tokens in this article.
2️⃣If the option to pay a commission with NMX is on:
1. We charge the standard base commission in the currency of the pair.
2. We immediately deduct 50% of this commission in NMX.
3. Further, when the trading day changes, we will fully compensate the previously withheld commission in the form of cashback with NMX tokens.
4. We will also compensate your additional discount on trading commissions (calculated based on the second point) in the form of cashback. If you have used additional ways to reduce your trading commission.
Example 1.
You have paid a basic trading commission of 100 USDT.
Also, at the time of paying commissions, we deducted from you an additional 50% in NMX tokens. For example, if the price of NMX equals 2 USDT, we would deduct 25 NMX from you.
When the trading day changes, we refund you with NMX tokens 100% of the deducted base commissions, that is, 50 NMX.
Overall, for the last trading day you only paid the trade in the form of 25 NMX tokens, which is 50% of the initial withheld base commission.
You can learn more about reducing trading commissions here.
You can learn more about referrals and farming levels here.