Does the Exchange Charge a Fee for the Physical Delivery Process?
Yes, exchanges typically charge a delivery or settlement fee for physically-settled contracts. This fee covers the operational and administrative costs associated with managing the delivery process, including the logistics of asset transfer, security checks, and any associated on-chain transaction fees.
This is separate from the standard trading commission.
Glossar
Physical Delivery
Delivery ⎊ Physical Delivery in a derivative contract signifies the actual transfer of the underlying crypto asset from the seller to the buyer upon exercise or settlement, as opposed to a cash-settled exchange of net differences.
Settlement Fee
Fee ⎊ In cryptocurrency, options trading, and financial derivatives, a settlement fee represents a charge levied by an exchange, clearinghouse, or other intermediary to finalize a transaction.
Fee Structure
Allocation ⎊ Fee structures within cryptocurrency, options trading, and financial derivatives represent the systematic distribution of costs associated with executing and maintaining positions, impacting net profitability and strategic decision-making.