Polymarket Launches Maker Rebates Program With Taker Fees on 15-Minute Crypto Markets

TLDR:

• Polymarket maintains fee-free trading across most prediction markets with no deposit or withdrawal charges.
  
• The platform now charges taker fees exclusively on 15-minute crypto markets to fund liquidity incentives.
  
• Collected fees are redistributed daily in USDC to market makers participating in the rebates program.
  
• Programmatic traders must update API clients to handle the new fee structure on enabled markets correctly.

Polymarket has updated its fee structure documentation, revealing that the platform maintains a fee-free model for most markets. 

The prediction market platform now charges taker fees exclusively on 15-minute crypto markets. These collected fees fund the Maker Rebates Program, which redistributes earnings to market makers daily in USDC. The platform confirmed that USDC deposits and withdrawals remain free of charge for all users.

Fee-Free Trading Maintained Across Majority of Markets

The platform continues to operate without charging fees on the vast majority of its prediction markets. Users can deposit and withdraw USDC without incurring platform charges, though third-party payment processors may apply their own fees. 

Market participants trading on standard markets face no transaction costs when buying or selling outcome shares.

This approach differentiates Polymarket from traditional trading platforms that typically charge commissions on each transaction. 

The fee-free model has contributed to the platform’s growth among prediction market traders. However, the platform recognized the need for incentives in specific high-frequency trading markets.

The decision to keep most markets fee-free reflects the platform’s strategy to maintain accessibility. 

This structure allows users to participate in prediction markets without cost barriers. Nevertheless, certain markets require a different approach to ensure adequate liquidity provision.

Daily USDC Redistribution Targets Market Maker Participation

The newly implemented taker fees on 15-minute crypto markets serve a specific purpose within the trading ecosystem. 

Collected fees are redistributed daily to market makers who provide liquidity on these fast-moving markets. The program aims to incentivize deeper order books and reduce bid-ask spreads.

Market makers receive rebates in USDC as compensation for maintaining continuous liquidity. The daily distribution mechanism ensures regular rewards for participants who quote both sides of the market. 

This structure encourages professional traders to commit capital to these short-duration markets.

Programmatic traders using the platform’s API must update their systems to accommodate the new fee structure. The platform specified that these updates are necessary for accurate trade execution on fee-enabled markets. 

The taker-only fee model means passive liquidity providers receive rebates while active takers pay fees. This mechanism has become standard practice in modern electronic markets to promote tight spreads and consistent liquidity availability.