Offer creation process and fees explained
We recently found out that many of our customers are not aware of how our offers and commissions work, and in this blog post we’d like shed some light on these topics and explain some myths.
Offers
The main thing we’d like to highlight is that offer creation is free at Hodl Hodl, and you don’t need anything besides your Hodl Hodl account to create an offer.
Some users are accustomed to the fact that on Localbitcoins you have to either have the funds in your wallet, or come to terms with the fact that you have to pay the entire exchange fee if you want to create an offer.
At Hodl Hodl, by creating an offer:
- You don’t have to have any funds in your wallet
We don’t hold your funds — we generate multisig escrow addresses for each trade instead, where the funds are locked for the contract’s lifetime.
2. You don’t pay the entire exchange fee
The exchange fee for every trade is ONLY DEDUCTED if the contract has been completed and the fee has been equally paid by both buyer and seller (explained below).
3. You don’t have to pay anything
Creating the offer is completely free at hodlhodl.com.
Therefore, if you ever come to hodlhodl.com and none of the offers listed fit your requirements, you can simply create your own offer and set the conditions that are profitable for you.
During offer creation, if you can’t find a payment method you need, you can propose a new one on the “Payment methods” page.
Fees
Hodl Hodl is cheaper than most P2P exchanges, with a maximum 0.6% exchange fee per trade.
- 0.6% fee for every registered user
- 0.55% fee for every user that registered with a referral code
- 0.5% fee for every user that passed verification (passing verification IS NOT OBLIGATORY at hodlhodl.com)
The exchange receives fees in Bitcoin only, thus they are deducted from the deposit upon release of the deposit (and only if the contract was completed successfully). However, since it would be unfair for the market to make the buyer pay all the fees (since he’d receive a lesser amount than was deposited by the seller), half of that fee, in fiat currency (or crypto if the payment method is cryptocurrency), is also deducted from the sum the buyer sends to the seller. This way, both buyer and seller pay equal shares of the fee.
For example: there’s a trade for 1 BTC for $10,000 (price $10,000, contract value $10,000). Let’s say the exchange fee is 0.6%. The exchange will withhold 0.006 BTC from the funds sent by the seller. The buyer will receive 0.994 BTC and will be asked to send $9970 to the seller — thus we can now see that both buyer and seller paid equal amounts of commission on their respective sides: 0.003 BTC or $30.
Another important case is when buyer and seller have different fee rates. For example, an exchange may give a pro-trader a fee discount with a rate of 0.3% instead of 0.6%. In this case, the lowest among the two is picked as the fee rate for the contract between the two users. In this particular case it would be 0.3%.
When trying to create a contract from the offer’s page, the two fields for amounts show you:
- The fiat field shows the amount to be paid with half of the exchange fee already deducted. Thus if you enter 1 BTC and the price is $10,000 it will show you $9970.
- The Bitcoin field will show you the amount including all the fees: thus a buyer entering 1 BTC should expect to receive less.
Finally, there’s also a transaction fee. Txfees for sending to escrow are always covered by the seller. Transaction fees for sending from escrow is always covered by the side receiving funds — buyer if contract was completed successfully, seller if contract was cancelled and he refunds the bitcoins back to himself.
Reach us
- Hodl Hodl exchange: hodlhodl.com
- TESTNET Hodl Hodl exchange: testnet.hodlhodl.com
- Predictions by Hodl Hodl: predictions-testnet.hodlhodl.com
- TESTNET Predictions by Hodl Hodl: predictions.cc
- E-mail: support@hodlhodl.com
- Blog: https://medium.com/@hodlhodl
- Twitter: https://twitter.com/hodlhodl
- Telegram: https://t.me/HodlHodl
- Reddit: https://www.reddit.com/r/hodlhodl
- Slack: https://goo.gl/zaMnCn
- Facebook: https://www.facebook.com/hodlexchange
- Youtube: https://www.youtube.com/channel/UCgujEoZqX_FfDTLb3Uuhsdg
Hodl!
