Fees & Payouts
Transparent fee structure and detailed payout calculations. Know exactly what you're paying and what you'll earn.
Fee Structure
0%
Entry Fee
No fee when placing bets. 100% of your USDC goes into the pool.
0%
Loss Fee
No additional fee if you lose. You only lose your original bet.
2%
Winner Fee
Only winners pay a 2% fee on their gross payout.
How the Winner Fee Works
The 2% fee is only charged on winnings, not on your original stake. Here's a breakdown:
The fee is automatically deducted when winnings are distributed. You receive the net amount directly to your wallet.
Payout Calculation
Your payout is determined by your share of the winning pool:
Gross Payout = (Your Bet ÷ Winning Pool) × Total Pool
Net Payout = Gross Payout × 0.98
Example Scenarios
Scenario 1: Minority Position Wins
- Yes Pool: $2,000
- No Pool: $8,000
- Your bet: $200 on Yes
- Yes wins
Share: $200 / $2,000 = 10%
Gross: 10% × $10,000 = $1,000
Fee: $20
Net: $980 (+$780 profit)
Scenario 2: Majority Position Wins
- Yes Pool: $8,000
- No Pool: $2,000
- Your bet: $800 on Yes
- Yes wins
Share: $800 / $8,000 = 10%
Gross: 10% × $10,000 = $1,000
Fee: $20
Net: $980 (+$180 profit)
Notice: The same payout ($980) requires different bet sizes depending on which side you're on. Betting against the crowd is riskier but more rewarding.
Understanding Odds
The displayed probabilities reflect current pool ratios, not true event probabilities:
| Yes Pool | No Pool | Yes Odds | No Odds | Yes Multiplier |
|---|---|---|---|---|
| $1,000 | $9,000 | 10% | 90% | ~9.8x |
| $3,000 | $7,000 | 30% | 70% | ~3.3x |
| $5,000 | $5,000 | 50% | 50% | ~2x |
| $7,000 | $3,000 | 70% | 30% | ~1.4x |
| $9,000 | $1,000 | 90% | 10% | ~1.1x |
Multipliers are approximate and shown after the 2% fee. The actual multiplier depends on your share of the winning pool.
Automatic Distribution
Winnings are automatically distributed to your wallet when markets resolve. No action required!
Market Resolution
The oracle determines the outcome. The smart contract updates the market status.
Automatic Payout
Winnings are automatically calculated and distributed to all winners.
Receive USDC
Net winnings (minus 2% fee) are transferred directly to your wallet.
No Gas Fees: Since payouts are distributed automatically by the protocol, you don't pay any transaction fees to receive your winnings.
Refund Situations
In rare cases, markets may be refunded instead of resolved:
Oracle Failure
If the price oracle fails to report data, all bettors receive full refunds.
Invalid Market
If a market is determined to be invalid (e.g., card doesn't exist), full refunds are issued.
Admin Intervention
In extreme circumstances, admins can trigger refunds. This is a last resort.
Refunds return 100% of your original bet—no fees are charged on refunds.
Where Do Fees Go?
The 2% winner fee is split 50/50 between the protocol treasury and token holders:
Protocol Treasury
Supports platform development, oracle costs, infrastructure, and security audits.
Fee Share Pool
Distributed to token holders proportionally based on their holdings.
Fee Share for Token Holders
Token holders can claim their share of protocol fees from the fee share pool. The more you hold, the larger your proportional share of the 50% fee allocation.
- •Fees accumulate in the fee share pool as winnings are distributed
- •Token holders can claim their proportional share at any time
- •Distribution is based on token holdings at claim time
Treasury Allocation
The 50% treasury share is used for:
- •Platform Development: Ongoing improvements, new features, and maintenance
- •Oracle Costs: Paying for Switchboard price feed updates
- •Infrastructure: Servers, indexers, and real-time systems
- •Security: Audits and ongoing security measures