When trading on Gate's prediction market, it's important for users to understand the fee structure to ensure transparency. The total transaction fee consists of both the Gate platform service fee and the Polymarket protocol fee.
1. Gate Platform Service Fee (Fixed)
Gate charges a fixed service fee for all transactions in the prediction market section, regardless of the market category:
- Maker (Limit Order) Fee: 0.8%
- Taker (Market Order) Fee: 0.8%
Note: This rate is calculated based on your actual transaction amount (trade price × number of shares).
2. Polymarket Protocol Fee (Dynamic)
Polymarket, as the underlying liquidity protocol, uses a fee mechanism designed to regulate order book depth through economic incentives. Polymarket applies completely different logic for Maker and Taker fees:
1. Maker (Order Creator) Fee
- Fee Rate: 0%
- Explanation: To encourage users to provide liquidity, the Polymarket protocol typically does not charge any fees to Makers. If you place a limit order and wait for it to be filled, you don't pay any protocol fees.
2. Taker (Order Filler) Fee
- Fee Rate: Dynamic (fluctuates between 0% and 2%)
- Explanation: When you click "Buy/Sell Now" and consume existing liquidity, the protocol charges a dynamic fee. This fee is adjusted in real time based on the market category and current price (probability).
Polymarket Taker Fee Reference Table (Peak Values)
The table below shows the peak Taker fee rates charged by Polymarket when the market price is around $0.50 (i.e., the event probability is 50/50, representing maximum uncertainty):
| Market Category | Polymarket Protocol Fee (Taker Peak) | Remarks |
|---|---|---|
| Cryptocurrency (Crypto) | ~ 1.80% | Highly volatile, high liquidity demand |
| Economics/Politics/Tech (Econ/Politics/Tech) | ~ 1.00% - 1.25% | Mainstream prediction market categories |
| Sports | ~ 0.75% | Fixed fee rate is lower for sports betting markets |
| Geopolitics/Major News (Global News) | 0% | Special public interest/major news markets are usually fee-exempt |
3. Taker Dynamic Fee Calculation Logic
Polymarket's Taker protocol fee follows the principle: the higher the uncertainty, the higher the fee. The fee rate fluctuates in an arc pattern based on the current share price (between $0 and $1):
- Peak (Price = $0.50): Protocol fee is at its highest (see table above).
- Decay Zone (Price deviates from $0.50): As the price moves toward $0 (event unlikely) or $1 (event certain), the protocol fee decreases linearly.
- Extremes (Price < $0.05 or > $0.95): When the outcome is nearly certain, Polymarket's Taker protocol fee approaches 0%.
4. Comprehensive Calculation Example
Suppose you participate in a cryptocurrency prediction market (Polymarket peak fee rate is 1.8%) with a transaction amount of $500:
Scenario A: As a Taker (Market Order) buying at $0.50
- Gate Service Fee: $500 × 0.8% = $4.00
- Polymarket Protocol Fee: $500 × 1.8% = $9.00
- Total Fees Paid: $13.00
Scenario B: As a Maker (Limit Order) filled
- Gate Service Fee: $500 × 0.8% = $4.00
- Polymarket Protocol Fee: $0 (Maker is exempt from protocol fee)
- Total Fees Paid: $4.00
5. Frequently Asked Questions (FAQ)
Q: Why is my actual cost higher than the displayed price when buying?
A: The prediction market frontend usually includes the estimated Taker protocol fee and Gate service fee directly in the "Estimated Total" amount, making it easier for you to see your total cost upfront.
Q: How can I avoid paying the Polymarket protocol fee?
A: The most effective way is to use a limit order (Maker) for your trade. Since Polymarket charges zero fees to Makers, you'll only pay Gate's fixed platform service fee.
Disclaimer
The content provided herein is for reference and educational purposes only and does not constitute any financial, investment, trading, or legal advice, nor does it constitute an offer or solicitation to buy or sell any digital assets. Gate makes no express or implied representations or warranties regarding the accuracy, completeness, or timeliness of the information contained herein. Product features, interfaces, rules, and fee structures may be updated or adjusted at any time. Please refer to the latest announcements and the actual information displayed on the Gate platform for the most accurate details.
Digital asset investments involve significant risk, and prices may fluctuate substantially. You may lose the entire amount of your investment. Please make decisions cautiously based on your own financial situation and risk tolerance after fully understanding the associated risks. If necessary, you are advised to consult an independent professional financial or legal advisor.
For more information about potential risks, please refer to Gate's Risk Disclosure and User Agreement.
