Here's a brief explanation of the Polymarket fee rate controversy: Polymarket changed its fee formula three times overnight. Old: fee = C × p × feeRate × (p × (1 - p))^exponent Middle: fee = C × feeRate × (p × (1 - p))^exponent New: fee = C × feeRate × p × (1 - p) The old formula is straightforward. The middle formula removed one "× p" from the old formula, meaning it multiplies by the price one less time, leading to an overall higher fee (because the price p is always less than 1). Furthermore, the lower the share price, the higher the fee, resulting in absurdly high fees when the price is close to 0. The new formula removes "^exponent" from the old formula, meaning the default value for exponent is now 1. Based on the actual rates disclosed by the community, the previous exponent should have been less than 1. Since the theoretical maximum value of (p × (1-p)) is 0.25, increasing the exponent to 1 will generally reduce the cost and make the rate curve smoother, avoiding the extreme case where the price is close to 0.