When trading on the Gate Prediction Market, it's important for users to understand the fee structure to ensure transparency. The total trading fee consists of both the Gate platform service fee and the Polymarket underlying protocol fee.
1. Gate Platform Service Fee (Fixed)
Gate charges a fixed service fee for all trades in the prediction market section, regardless of market category:
- Maker fee: 0.8%
- Taker fee: 0.8%
Note: This percentage is calculated based on your actual transaction amount (executed price × executed shares).
2. Polymarket Protocol Fee (Dynamic)
Polymarket, as the underlying liquidity protocol, uses a fee mechanism designed to adjust the order book depth through economic incentives. Polymarket applies completely different logic for Maker and Taker fees:
1. Maker Fee
- Fee: 0%
- Explanation: To encourage users to provide liquidity, the Polymarket protocol generally does not charge any fees to Makers. If you place a limit order and wait for it to be filled in the order book, you do not pay any protocol fee.
2. Taker Fee
- Fee: Dynamic (fluctuates between 0% - 7%)
- 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).
- Formula: fee = C × feeRate × p × (1 - p)
Polymarket Taker Fee Reference Table (Peak Values)
The table below shows the peak Taker protocol fee charged by Polymarket when the market price is around $0.50 (i.e., when the event probability is 50/50 and uncertainty is at its highest):
| Market Category | Polymarket Protocol Fee (Taker Peak) | Notes |
|---|---|---|
| Crypto | ~ 7% | High volatility, high liquidity demand |
| Finance/Politics/Tech/Mentions | ~ 4% | Mainstream prediction market categories |
| Sports | ~ 3% | Lower fixed fee for sports betting |
| Economics/Culture/Weather/Other | ~ 5% | Lower fixed fee for sports betting |
| Global News | 0% | Special public interest/major news events are usually protocol fee-free |
3. Taker Dynamic Fee Calculation Logic
Polymarket’s Taker protocol fee follows the principle: the higher the uncertainty, the higher the fee. The fee fluctuates in an arc pattern based on the current share price (between $0 and $1):
- Peak (Price = $0.50): The protocol fee is at its highest (see table above).
- Declining Zone (Price moves away from $0.50): As the price moves toward $0 (impossible) or $1 (certain), the protocol fee decreases linearly.
- Extreme Zone (Price < $0.05 or > $0.95): When the outcome is almost certain, the Polymarket Taker protocol fee approaches 0%.
4. Comprehensive Calculation Example
Suppose you participate in a crypto prediction market (Polymarket peak fee rate is 7%) with a transaction amount of $500:
Scenario A: As a Taker (buying at $0.50)
- Gate Service Fee: $500 × 0.8% = $4.00
- Polymarket Protocol Fee: $500/0.5 × 7% × 0.5 × (1-0.5) = $17.50
- Total Fees Paid: $21.50
Scenario B: As a Maker (limit order filled)
- Gate Service Fee: $500 × 0.8% = $4.00
- Polymarket Protocol Fee: $0 (Makers are exempt from protocol fee)
- Total Fees Paid: $4.00
5. Frequently Asked Questions (FAQ)
Q: Why is my actual payment higher than the displayed price when I buy?
A: The prediction market frontend typically includes the estimated Taker protocol fee and Gate service fee directly in the “Estimated Total,” making it easy for you to see your total cost at a glance.
Q: How can I avoid paying the Polymarket protocol fee?
A: The most effective way is to trade using a limit order (Maker). Since Polymarket charges 0% for Makers, you only need to 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.
