How do Polymarket fees work?
Polymarket charges fees through a spread built into the market prices. Fee structure: Bid-ask spread - The difference between the buying price and selling price is how Polymarket earns revenue.
02 spread represents the fee. Maker-taker model - Some exchanges distinguish between makers (adding liquidity) and takers (removing liquidity). Polymarket's exact fee schedule varies by market.
Typical fees: Estimated around 1-2% per trade on average. Higher for low-liquidity markets. Lower for high-volume markets.
Additional costs: Network fees - Polygon blockchain transaction fees (usually small, a few cents). Slippage - Price impact on large orders in thin markets. Liquidity considerations: High-liquidity markets like major elections have tighter spreads.
Low-liquidity niche markets have wider spreads and higher effective fees. To minimize fees: Trade in high-liquidity markets. Use limit orders when possible.
Avoid large orders in thin markets.