The Polymarket prediction market platform has recently quietly changed its transaction fee model for a key market segment, marking a significant shift from its long-standing "fee-free trading" policy. According to updated information in its official documentation, Polymarket has begun applying taker fees to cryptocurrency price prediction markets within the 15-minute timeframe, while the majority of other markets retain their previous zero-fee rates.
Specifically, this new fee only applies to those placing orders to liquidation (takers), while those providing liquidation (makers) are exempt. Notably, Polymarket does not retain any of the fees paid by takers; instead, it is reimbursed daily in USDC to LP, directly funding liquidity incentive programs and improving Order Book depth. This demonstrates Polymarket's priority on optimizing the trading experience and market efficiency, rather than seeking direct revenue from fees.
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Transaction fees are designed in a curve format and vary depending on market probability. Fees are highest when the probability is near 50%, which is when the market has the greatest uncertainty and highest trading demand. Conversely, when the probability approaches 0% or 100%, transaction fees are almost zero. As illustrated in the document, if a user trades 100 contracts at a price of $0.50, the total fees would be approximately $1.56, equivalent to nearly 3% of the transaction value at the top of the fee curve.
Notably, Polymarket did not make any official announcements on its usual media channels about this change. However, the document's revision history shows that the terms related to taker fees are recent additions, suggesting this was a deliberate and pre-planned adjustment. The choice to "update the document first, communicate later" also reflects Polymarket's characteristic style, which often tests new mechanisms directly on the product before widespread release.
