How prediction market fees work
What is a prediction market fee?
A prediction market fee is the amount an exchange deducts from a filled order in exchange for matching, settlement, and liquidity services. It is charged only when your order fills, and it is separate from the payoff of the contract itself. On PredictAsiaX the fee is a small percentage of the size you trade — up to 0.20%, and lower after discounts — shown to you in the order preview before you confirm.
Why do prediction market fees change with the price of the outcome?
Fees are lowest on longshot prices (near 0 or 100) and a little higher around 50/50. You always see the exact fee for the price you are trading in the order preview before confirming — there is no separate charge added later.
Why do fees differ between users on the same trade?
Almost every trading venue offers tier-based fee discounts. On PredictAsiaX two independent programs apply together: the VIP tier is based on your 30-day trading volume, and the PAX Holder tier is based on how much PAX you hold and for how long. A user with Diamond VIP and Founding PAX pays up to 70% less than a base-tier user on the same trade. The discounted fee is shown in the order preview before every trade.
How do Fast Markets charge the fee?
On Fast Markets the fee is already included in the all-in price you see. When you trade, the price itself reflects the fee — there is no separate fee line, and nothing extra is charged at settlement, where a winning contract still pays its full face value. The order confirmation shows the effective cost so it is never hidden.
What is the difference between a taker fee and a maker rebate?
A taker order immediately crosses the best available price and takes liquidity; a maker order rests and provides liquidity until a later order matches against it. Because makers add depth, most venues either waive their fee or pay them a rebate. On PredictAsiaX takers pay a small fee (up to 0.20%) and makers earn a rebate when their resting orders fill — a common structure across derivatives and prediction-market exchanges.
Are fees the same across all products on a platform?
Not always. Exchanges calibrate fees per product based on liquidity, competition, and how the product is used. PredictAsiaX has two product types: Markets, where you pay a small explicit taker fee and makers earn a rebate; and Fast Markets, where the fee is built into the price you see. Some venues also set lower rates for specific categories (geopolitics, weather, science) to encourage information aggregation on socially valuable questions.
How should I compare prediction market fees to traditional broker or exchange fees?
Traditional broker commissions have fallen toward zero, but the real cost of a trade is usually the bid-ask spread paid to the market maker, not the visible commission. In liquid equities that spread runs roughly 0.01% to 0.30%; in options and futures, 0.05% to 1%. A prediction-market taker fee of up to 0.20% sits within this range and is well below most sports-betting exchanges, which typically take 2% to 5% of gross winnings.
Do fees get charged on losing trades?
Yes. Fees are charged at fill time and are independent of the eventual settlement outcome. If you buy a position that loses, you pay the fee at purchase and lose the cost of the shares at settlement. If you buy a position that wins, you pay the same fee at purchase and receive the face value at settlement. Fees are never refunded based on outcome — they pay for the execution service, not the correctness of the prediction.
How is the fee schedule versioned and disclosed?
Sound practice is to version the fee schedule and stamp every trade with the version in effect when it filled. PredictAsiaX uses semantic versioning (currently v3.0.0), announces material changes on the fee page and, where practicable, by email, and preserves each historical version so past trades remain governed by the schedule under which they were executed. A user disputing a fee can request the exact version and inputs used to compute their specific charge.
Can I estimate my fee before placing a large order?
Yes. The order preview shows the exact fee for your trade before you confirm, with your tier discounts already applied, and the fee calculator at /fees gives a live quote from the same system that charges the fee at match time. Sizing a large position against that estimate tells you your effective cost up front.
Where is my fee history recorded?
Every fee you pay is recorded on an immutable, append-only ledger. Corrections are made only by adding compensating entries, never by editing history. You can review your own fee history and download receipts at /settings/fees, and independently verify any fee against the ledger at /verify.