If you’re looking to trade event contracts on Polymarket, it’s natural to ask how contracts settle and whether any Polymarket fees apply at any point. This could be when placing contract orders or during deposits and withdrawals.
Before signing up or even purchasing your first contracts, it’ll be helpful to know what to expect. We’ll cover all of that here, from what fees are charged to the markets that are exempt and how fees are calculated. We’ll also touch on gas costs and a few strategies that can help minimize the fees you pay.
Facts
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Pros and Cons of Polymarket Prediction Fees
Polymarket fees aren’t as steep as those of other trading platforms. And at the moment, 100% of what’s collected from trading fees are used in the Maker Rewards program. Still, there are a few cons you may want to know.
Pros and Cons - No deposit or withdrawal fees on USDC payments
- Some markets are free of fees
- Fees are generally low when they apply
- Fees support liquidity and better pricing
- Some markets have taker fees
Are There Any Polymarket Prediction Fees?
Yes. Polymarket charges very small trading fees, but only on certain markets. Trades on geopolitical and world events have no fees. This means buying or selling event contracts in these markets is absolutely free of any charges.
Polymarket is a crypto-based prediction market platform that uses USDC for trades. So making deposits with USDC via Polygon usually incurs almost no fee. USDC is a stable coin that’s backed by the US dollar and is federally regulated.
This Helps Hedge Against Crypto Fluctuations
Polygon is an Ethereum-based blockchain that provides faster transactions and lower fees.
You might be curious to know what these Polymarket fees are used for. According to the prediction market giant, all Polymarket fees are used to reward traders who provide liquidity and help keep pricing competitive and balanced across the market.
Polymarket fees are low when compared to others in this space and they are also transparent. So you always know what to expect with your trades.
Polymarket Trading Fees
Only trading fees are charged directly by Polymarket, and as we noted earlier, this applies to only some markets. While geopolitical and world events are excluded, trades on Polymarket sports markets, finance, or politics, have small fees.
Even then, the percentage of what is collected varies with the maximum pegged at 1.8% of the price of the contract share.
We found it rather interesting that fees are mainly paid by takers, that’s traders who choose to buy or sell a contract immediately at the current price without waiting around. But if you set your own price and wait for another trader on Polymarket to match that price, you’re a maker.
This means you won’t be charged any fee for the contracts traded. You’ll instead be rewarded via the Polymarket liquidity incentives program as you’ve helped to improve liquidity and to keep prices competitive.
Here are the markets that are currently charged fees and are also eligible for maker rebates:
- ₿ Crypto
- ⚽️ Sports
- 📈 Finance
- 🏛️ Politics
- 💸 Economics
- 📖 Culture
- ☀️ Weather
- 💻 Tech
- ﹫ Mentions
- ⭐️ Other/General
Which Markets Have Fees and How Are Polymarket Fees Calculated?
Now that you know trading event contracts under geopolitical and world events are free of fees, you might want to know which markets are charged and how these fees are calculated.
Polymarket fee is a percentage of the price of the contract multiplied by the number of shares traded and the taker fee rate. Here’s a table that shows the markets that are charged and what the taker fee rates are. Remember that makers don’t pay trading fees.
| Category | Taker fee |
| Crypto | 0.072 |
| Sports | 0.03 |
| Finance | 0.04 |
| Politics | 0.04 |
| Economy | 0.05 |
| Culture | 0.05 |
| Weather | 0.05 |
| Tech | 0.04 |
| Mentions | 0.04 |
| Others/General | 0.05 |
| Geopolitics/world | 0 |
Fees aren’t fixed and can vary based on what the share price is. The highest fees are charged on event contract shares priced at 50¢, meaning a 50% chance of the event happening. Fees are usually lower with higher or lower contract prices.
A contract priced at 75¢ will have the same fee as one priced at 25¢. The max fee for an event contract is 1.80% at a value of 50¢.
Deposit, Withdrawal, and Gas Fees
Polymarket only lets you trade using USDC, and it doesn’t charge any fees when you deposit on the Polygon network. If you’re using USDC directly on Polygon, you won’t have to pay any fee at all. If you’re funding your account using another coin or network, you’ll have to pay gas fees.
If you don’t hold crypto, there are third party payment providers like MoonPay and Coinbase where you can purchase crypto to fund your Polymarket account. These sites have their own fees too if you choose to use them.
Withdrawals are strictly via USDC, which is a nice plus since stablecoins can be used to hedge against crypto price fluctuations. And of course, Polymarket doesn’t charge a fee for withdrawals either.
You may still have to pay network or gas fees if you’re transferring your profits out to another wallet.
Strategies to Reduce Polymarket Fees
No one likes to pay fees for the fun of it, but they have their uses and can’t always be avoided. With that being said, you can reduce what’s charged as a fee with a few strategies. Here are a few we’ve found handy.
Deposit USDC on Polygon
Whether you’re using the Polymarket app or website, funding your trading account with USDC on the Polygon network is easily one of the best ways to cut down gas fees. But if you use other coins or networks, you’ll have to swap or bridge your funds first, which means more fees.
Take Advantage of Maker Rebates
Polymarket uses the fees collected from takers to fund its Maker Rebates program. So if you place limit orders in any eligible market, such as the Polymarket elections markets, that add liquidity and get filled, you’ll be given daily rebates in USDC. If your orders contribute to market activity, that means more liquidity – more money in the system, and potentially more rewards for you.
Take Note of Contract Prices
Contracts that are priced closer to 50¢ typically have higher fees that peak at 1.8%, but it gets lower at extremes, such as contracts prices close to 1¢ or 99¢. Taking note of this helps you decide what is better to go for. If you’re curious about what markets are offered or how event contracts work, you may find our Polymarket review useful.
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Conclusion: Take Note of Polymarket Fees Before You Start Trading
There were previously no trading fees at Polymarket, but now small fees on certain markets are charged. These fees are essential in rewarding traders who contribute to the market’s liquidity.
Exceptions exist, though. Geopolitical and world event contracts are free of fees. You can also reduce the amount of fees you pay using the tips shared such as making deposits via Polygon.
We hope this guide has been useful to you, and if you’re yet to register at Polymarket, click the banners on this page to visit the site and sign up.
Polymarket Fees FAQ
- ❓ What are Polymarket fees and are they charged on all markets?
Polymarket fees are small amounts charged when you trade certain prediction markets. They don’t apply to all the markets. Right now, there are no fees on event contracts on geopolitical and world event markets.
- 💵 Are Polymarket deposits and withdrawals free?
Yes, Polymarket doesn’t take any fee for deposits or withdrawals if you fund your account using USDC on the Polygon network. Deposits using other coins or networks may have gas fees and funding your account through third party providers like Coinbase or MoonPay may have their own fees.
- 📉 How can I reduce Polymarket prediction fees?
Some of the best ways to reduce Polymarket fees are by making deposits using USDC on the Polygon network and placing limit orders instead of trading instantly.