How do Polymarket make money?
Polymarket makes money primarily through the bid-ask spread on each market. Revenue sources: Spread revenue - The difference between buy and sell prices is how Polymarket earns.
02 spread is profit. Trading volume - Higher volume means more spread revenue. Liquidity provision - Market makers earn a portion of the spread.
Additional revenue streams: API/developer fees - For high-volume API users. Future services - The platform may introduce additional fee-based features. The spread varies by market: High-liquidity markets (like major elections) have tighter spreads (lower fees).
Low-liquidity markets have wider spreads (higher fees). The platform processes billions in volume, so even small spreads generate significant revenue.