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There’s been misinformation circulating about @tradefoxai's fee structure. Here are the facts.
Since launch, aggregate fees as a percentage of total volume traded have been 0.33%. That figure is before any cashback or referral fees are paid out.
How it works:
We do not use a flat fee. We use a Gaussian distribution. We believe this structure is better than any flat fee model.
In prediction markets, most uncertainty lives near the middle of the curve. That’s where price discovery happens. As price moves toward 0 or 100, uncertainty collapses quickly because the outcome is closer to being decided.
Our fee model reflects this:
- lowest at the edges
- highest in the middle
Examples:
- At 1c or 99c, the fee rate is 0.069%
- At 10c or 90c, the fee rate is 0.63%
In market terms:
- A Fed decision sitting at 95c is in the low-fee zone.
- A market at 99c is minimal.
- A 2c moonshot is also low fee.
Flat fees are lazy and ignore probability. Our structure aligns fees with uncertainty and price discovery.
To the competitor who posted the FUD, do better. Try to win by building a better product. If you can't do that, at least don't make up fake news.