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Fees

Fees can be automatically applied to deposits, trades, and withdrawals. You don't need to calculate or deduct them yourself — the platform handles the configured fee logic transparently.

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The specific fee structure (rates, types, and operations covered) varies depending on your contract with MagFi. The examples below illustrate how fees are calculated and applied, but your actual rates will be defined in your agreement. Reach out to the MagFi team if you have questions about your fee configuration.

How Fees Work​

When a customer places a trade or initiates a withdrawal, the platform automatically:

  1. Calculates the total fee based on the configured fee rules
  2. Deducts the fee from the order amount before execution
  3. Settles the fee after the operation succeeds

The customer sends the full amount they want to trade or withdraw, and the platform adjusts it behind the scenes. For example, if a customer places a $100 buy order and the total fee is $1.60, the platform sends a $98.40 order to the market and collects the $1.60 fee separately.

Fee Calculation​

Fees can be composed of multiple rules that stack together. All rules are calculated against the original order amount — one rule does not reduce the base for another.

Example: a percentage fee + a flat fee on a $100 order

percentage fee: $100 × rate      = $1.50
flat fee:       fixed per trade  = $0.10
────────────────────────────────────────
total fee:                         $1.60
net order:                        $98.40

The same fee structure on a $10 order

percentage fee: $10 × rate       = $0.15
flat fee:       fixed per trade  = $0.10
────────────────────────────────────────
total fee:                         $0.25
net order:                        $9.75

The net order amount is what actually gets executed on the market. The customer's Go Account balance reflects the full $100 (or $10) debit, inclusive of fees.

Multiple fee rules do not compound on each other

When more than one fee rule applies, each rule is calculated from the original order amount, not from the amount left after the previous fee is deducted.

When Fees Apply​

Fees can be configured for different operations across the platform. Depending on your contract, fees may apply to any combination of the following:

Trades​

Trade fees apply to buy orders where the quantity is specified in the quote currency (e.g., "buy $100 worth of BTC"). The fee is deducted from the USD amount before the order is sent to the market.

Not every trade is fee-bearing

The implemented Magnolia trade-fee path applies to funded quote-currency buys such as "buy $100 of BTC." Sell orders and buy orders expressed in the base currency do not follow the same fee behavior.

  • Sell orders are not subject to trade fees
  • Buy orders specifying quantity in the base currency (e.g., "buy 0.1 BTC") are not subject to trade fees

Deposits​

Deposit fees apply when funds are received into a Go Account (e.g., incoming crypto transfers or fiat deposits). The fee is calculated and collected when the deposit is detected.

Deposit fees are applied from webhook-driven transfer events

This API applies deposit fees when it processes qualifying transfer / deposit webhook events. That means the fee is tied to deposit detection, not to the original funding request being accepted.

Withdrawals​

Withdrawal fees apply to crypto withdrawals. The fee is deducted from the withdrawal amount before the transaction is sent. For crypto withdrawals, amounts are calculated in the smallest unit (e.g., satoshis for BTC).

The requested withdrawal amount is not always the amount the destination receives

If a crypto withdrawal fee is configured, the fee is removed before broadcast. The destination receives the net amount after fee deduction, not the original requested amount.

Validate small crypto withdrawals before submission

Magnolia deducts the configured withdrawal fee from the requested amount before forwarding the send. If the request is too small to absorb the fee cleanly, handle that minimum check in your own UI or API layer instead of relying on the destination amount to stay intuitive.

Account Registration​

A one-time fee that can be charged when a new customer enterprise is registered on the platform.

Fee Settlement​

After a successful trade or withdrawal, the fee is automatically settled — transferred from the customer's Go Account to your organization's account. This happens in the background and requires no action from your side.

Fee settlement is a background follow-up step

The customer-facing trade or withdrawal can still succeed even if the later fee-settlement transfer has to be retried or fails operationally. Treat the main operation result and the fee-settlement bookkeeping as separate concerns in your monitoring.

If the order fails, no fee is charged and no settlement occurs.

Rounding​

Fee calculations use banker's rounding (half-even) to avoid systematic bias. When a fee amount falls exactly on the 0.5 boundary:

  • If the digit before is even, round down (e.g., $2.50 → $2)
  • If the digit before is odd, round up (e.g., $3.50 → $4)

Next Steps​