> For the complete documentation index, see [llms.txt](https://pred-1.gitbook.io/pred-docs/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://pred-1.gitbook.io/pred-docs/trading/fees-launching-soon.md).

# Fees (Launching Soon)

PRED charges one fee, on one side of the trade: the taker. There are no maker fees, no subscription, no fee to place, cancel, or amend an order, and nothing taken when winning shares redeem at resolution.

Fee on PRED is only applied to Taker's whether it's pre match or during match.You do not get charged while being a Maker & when match is auto resolved.

Makers are never charged. If your order rests on the book and someone else trades into it, you pay nothing. The fee is paid only by the side that crosses the spread.

***

### Fee structure

Fees are calculated using the following formula:

The base rate is 2.5% (250 bips) on every market. That is the base rate, not the fee you actually pay. What you pay scales with the price you trade at, and it is always less than 2.5%.

Fees are calculated using the following formula:

`Fee = 0.025 × shares × price × (1 − price)`

Where:

* shares = number of shares traded
* price = probability between 0 and 1 (a 40¢ share is <mark style="color:$primary;">0.40</mark>)

Two things follow from the <mark style="color:$primary;">price × (1 − price)</mark> term:

* It is symmetric around 50¢. A trade at 30¢ costs exactly the same in dollars as the same trade at 70¢. The fee does not care which side of a market you take.
* As a share of what you spend, it is <mark style="color:$primary;">2.5% × (1 − price)</mark>. Buy 100 shares at 90¢ and you spend $90. The fee is $0.225 i.e. 0.25% of what you spent.

The largest dollar fee per share sits at 50¢ and falls away toward both ends of the book.

| Base rate           | 2.5% (250 bips)                                 |
| ------------------- | ----------------------------------------------- |
| Who pays            | Takers only                                     |
| Maker fee           | 0%                                              |
| Formula             | 0.025 × shares × price × (1 − price)            |
| As % of trade value | 2.5% × (1 − price) — 1.25% at 50¢, 0.25% at 90¢ |
| Largest dollar fee  | at 50¢                                          |

### Fee table (100 shares)

| Price | Fee    | Buy: shares deducted | Sell: USDC deducted | % of trade value |
| ----- | ------ | -------------------- | ------------------- | ---------------- |
| 10¢   | $0.225 | 2.25 shares          | $0.225              | 2.25%            |
| 30¢   | $0.525 | 1.75 shares          | $0.525              | 1.75%            |
| 50¢   | $0.625 | 1.25 shares          | $0.625              | 1.25%            |
| 70¢   | $0.525 | 0.75 shares          | $0.525              | 0.75%            |
| 90¢   | $0.225 | 0.25 shares          | $0.225              | 0.25%            |

The 30¢ and 70¢ rows — and the 10¢ and 90¢ rows — have identical dollar fees, mirrored across 50¢.

Peak fee at 50¢, zero at both ends.

***

#### What the fee is taken in

The fee comes out of what you received on the trade, not out of a separate balance

#### Buying

You receive shares, so the fee is deducted in shares:

shares deducted = 0.025 × (1 − price) × shares

Buy 100 shares at 50¢ and 1.25 shares are taken as the fee. You are debited the full $50 you agreed to pay and keep 98.75 shares.

#### Selling

You receive USDC, so the fee is deducted in USDC:

USDC deducted = 0.025 × price × (1 − price) × shares

Sell 100 shares at 50¢ and $49.375 lands in your balance instead of $50.00.

These are the same fee. The buy-side deduction, valued at the price you traded at, is the identical dollar amount — 1.25 shares at 50¢ is $0.625.

Trade history and portfolio reporting show every fee as a USDC amount, whichever asset it was taken in, so the two are directly comparable.

***

### How fees are applied<br>

Precision. Fees are computed in base units — 6 decimal places — and always rounded down, never up. The smallest fee that can be charged is <mark style="color:$primary;">0.000001</mark>. Anything below that is zero. Because the rate is applied as a whole number of bips, a fee can land a hair under the formula's exact value. It never lands above it.

> **Trades at 0 or 1 are free -** <mark style="color:$primary;">price × (1 − price)</mark> is zero at both ends, so a fill at 0¢ or 100¢ carries no fee at all.

> **Resolution is free -** When a market settles, winning shares redeem for 1.00 USDC each with nothing deducted. The fee was already paid at the moment you traded.

> **No operational fees -** There is no fee to place, amend, or cancel an order.

***

### Quick reference

<table data-header-hidden data-search="false"><thead><tr><th></th><th></th></tr></thead><tbody><tr><td>Base rate</td><td>2.5% (250 bips)</td></tr><tr><td>Who pays</td><td>Takers only</td></tr><tr><td>Maker fee</td><td>0%</td></tr><tr><td>Charged in</td><td>Shares on a buy, USDC on a sell</td></tr><tr><td>Fee to place, amend, or cancel</td><td>None</td></tr><tr><td>Fee at resolution</td><td>None</td></tr><tr><td>Rounding</td><td>Down, 6 decimal places</td></tr><tr><td>Minimum fee</td><td>0.000001</td></tr></tbody></table>

Fees collected will partly contribute to **liquidity rewards and community programs**, ensuring deep markets and sustainable incentives.