Earn a passive income with the Huobi’s Futures Rebate Program

Do you have a group of trading friends or are you an influencer, author, or do you have a large social media presence? Here is how I make $600 in passive income through Huobi’s Futures’ Rebate Program (HFRP) and how you also can start earning by leveraging the power of your large following and friends. I came across Huobi Global back in 2017 as I started my journey in crypto. As you would imagine, I paid little attention to the platform, preferring peer-to-peer platforms such as Local Bitcoins to make my crypto purchases.

Fast-forward, four years later, I am an avid Huobi user – enjoying multiple benefits and features available on the exchange. The key factor to move to Huobi? The high rewards and incentives offered by the exchange – the latest, a futures’ rebate program launched on March 31, 2021.

The Huobi Futures’ Rebate program

On March 31, 2021 at 4 PM UTC, Huobi Futures launched its upgraded rebate program – adding USDT margined swaps into the program. The upgraded rebate program offers 60% rebates to participants in any of the three supported products – coin-margined futures, coin-margined swaps and USDT-margined swaps. According to a statement from the Huobi Global team, the rebates are offered in three-tier levels determined by partnership conditions and evaluation standard. Here is a detailed table explaining the conditions, duration and maximum rebates available for participants at every level.

Participants are entitled to different rebate durations across the three levels – 365 days, 730 days and permanent – calculated differently to spot trading rebates.  Having registered for the Huobi Futures’ Rebate Program, the team usually send an evaluation analysis every quarter to my email, which then determines my level of rebates.

How I joined the Huobi Futures Rebate Program

To join the Huobi Futures’ Rebates Program, I needed to click this form and start the registration process. Additionally, I could have sent an email to Huobi Global team (app@huobi.com) to start the registration process. However, using email was a bit hectic as it included Huobi UID, my business country and region, my resources background, brief business plan, self-introduction, personal WeChat or mobile phone number and other information.

Following successful registration, Huobi will confirm my application in 10 days either through mail or WeChat messages.

What sets Huobi Futures apart 

Now that I’m in the HFR Program, what are some of the features I expect to enjoy? 

1. Robust risk control and zero clawback: Huobi Futures supports a three-phase liquidation protection mechanism with no transaction fees charged in partial liquidation. The platform holds a record of zero clawback for 752 days since its launch in December of 2018.
2. High trading volume: As alluded to, Huobi is the largest derivatives platform recording over $2.3 trillion in futures over the course of 2020 – averaging $6.3 billion daily volumes. The platform has added over 57 mainstream currencies on its coin-margined swaps with a wealth of DeFi products to choose from. 
3. Long term view: Unlike other exchanges, Huobi does not close out profitable trade positions.
4. Multiple innovations: To improve the asset utilization and to reduce and trading cost, Huobi introduced lots of innovative features like locked margin mechanism, take-profit and stop-loss, real-time settlement, Follow a Maker & Taker, etc.
   

HFRP vs Binance rebate program

Apart from offering unique, expandable features to its clients, Huobi Futures’ Rebate Program also sets itself apart among its competitors – as it is offered by the largest crypto futures trading platform. 

In comparison to other exchanges like Binance exchange, Huobi offers multiple advantages to its Rebate Program clients. 

1. High rebate ratio: After calculation we can find that the highest rebate for Maker is close to 90%. While the highest for Maker on Binance is 30%, and only 20% will be rebated to the inviters and the remaining 10% will be rebated to the invitees.
2. Rebate duration: Huobi Futures’ rebate program ranges between 1 year and permanent while Binance Rebate program only lasts 90 days.

Below is a chart showing the comparison between HFRP and Binance Rebate program.

Table 2: Huobi Rebate Program vs Binance Futures Rebates

How much I earned from HFRP

I have been a part of the Huobi Futures Rebate Program since January 2020, and started earning passive income from the exchange later in the year. With the new upgraded rebates program, I expect to earn more as USDT-margined swaps are added to the roaster. 

Calculating the rebates

So how did I calculate my earnings and rebates generated from my invitees? Below is a breakdown of how much I earned in the Huobi Rebates Futures Program. Having reached the above conditions, I enjoyed 60% rebates from my invitees. 

NB: The rebates for coin-margined futures, coin-margined swaps and USDT-margined swaps are calculated separately. The contract rebates generate from invitees’ net transaction fees, which excludes their negative transaction fees as Maker.

Maker and Taker fees: Huobi Futures

I invited 20 users whose monthly cumulative trading amount is around $4,000,000. Among this, 90% are coin-margined swaps volume and 10% are coin-margined futures volume. And in coin-margined swaps trading, 85% are maker transactions while in coin-margined futures trading, 90% are maker trading. So below is my rebate calculation:

(1) coin-margined swaps-volume: 4,000,000*90%= 3,600,000; fee structure: 85% maker+15% taker

Lowest maker fees = – 0.03%

Lowest taker fees =0.037%

Step 1: Calculate rebates generated from the invitees’ Maker fees.

Step 2: Calculate rebates generated from the invitees’ Taker fees.

So the total gained from their coin-margined swaps trading is “Rebates (Invitee’s Maker fees) + Rebates (Invitee’s Taker fees)” or $523.26 + $32.4 = $555.66

(2) coin-margined futures-volume: 4,000,000*10%=400,000; fee structure: 90% maker+10% taker

• Lowest maker fees = -0.015%

• Lowest taker fees = 0.020%

Step 1: Calculate rebates generated from the invitees’ Maker fees.

Step 2: Calculate rebates generated from the invitees’ Taker fees.

So the total gained from their coin-margined futures is “Rebates (Invitee’s Maker fees) + Rebates (Invitee’s Taker fees)” or$43.2+$3=$46.2 

Therefore, my total earning from these 20 users are$555.66+$46.2=$601.86 

Above is my personal experience, now Let me tell you how to start. Let’s assume your invitees only trade around $1,000,000 per month. Take coin-margined swaps as an example:

(i) 80% maker+20% taker

Your invitees traded $1,000,000 on Huobi coin-margined swaps, with 80% ($800,000) as the maker and 20% ($200,000) as a taker. Here’s how much you earned from the trade:

• Lowest maker fees = -0.03%
• Lowest taker fees = 0.037%

Step 1: Calculate rebates generated from the invitees’ Maker fees.

Step 2: Calculate rebates generated from the invitees’ Taker fees.

So the total gained from your invitees is “Rebates (Invitees’ Maker fees) + Rebates (Invitees’ Taker fees)” or $136.8 + $12 =149

And the total Transaction fee=800,000*0.02%+200,000*0.05%=$260, therefore the rebate ratio is 149 /260=57.5%

(ii) Huobi Coin margined swaps: 100% maker+0% taker

What if all their transactions are makers’? Here’s how much generate:

• Lowest maker fees = -0.03%
• Lowest taker fees = 0.037%

Step 1: Calculate rebates generated from the invitees’ Maker fees.

Step 2: Calculate rebates generated from the invitees’ Taker fees 

Total rebates paid by my second invitee is $172. 

And the total Transaction fee=1,000,000*0.02%=$200, therefore the rebate ratio is 172/200=86%

(iii) 50% maker+50% taker

Then what about 50% Maker trades and 50% as a Taker? 

• Lowest maker fees = -0.03%
• Lowest taker fees = 0.037%

Step 1: Calculate Rebates from the invitees’ maker fees 

Step 2: Calculate Rebates from the invitees’ taker fees

The total rebates paid by my third invitee is $116. 

And the total Transaction fee=500,000*0.02%+500,000*0.05%=$350, therefore the rebate ratio is 116/350=33.14%

Table showing different scenarios on how maker and taker rebates are paid out. It’s obvious that the higher the maker ratio, the more rebates that you can get. And the rebate ratio is higher to 86% if all transactions are makers’. 

Huobi Futures will retain rights of the final interpretation of its rules and rebates. For further information, click the announcement and follow us on Twitter: https://twitter.com/HuobiFutures_ 

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