logo
    • Buy Crypto
    • Markets
    • Futures
    • Spot
    • Earn
    • Affiliates & AI
    • More
    1. WEEX
    2. Crypto News
    3. Polymarket Fee Surge Explained: Where Did 90%+ of Extreme Fees Come From?

    Polymarket Fee Surge Explained: Where Did 90%+ of Extreme Fees Come From?

    By: blockbeats|2026/04/01 10:00:09
    0
    Share
    copy
    Prefer us on GooglePrefer us on Google
    QNTQNT
    00.00%--
    Sleepless AISleepless AI
     
    Original Title: "Deep Dive into Polymarket's Fee Formula: How Did 90%+ Extreme Fee Rate Come About?"
    Original Author: Azuma, Odaily Planet Daily

    Polymarket suddenly found itself in a fee controversy.

    Many community users discovered last night that when trading on Polymarket, they were charged unusually high fees, resulting in a significant reduction in received shares or earnings compared to before.

    Overseas user Frosen (@frosen) even posted a screenshot, indicating that they tried to place an order for 100 shares at a price of 0.1 cents in an "economics" market, but the Polymarket frontend displayed a correct payout amount of only $5.2 (which should normally be $100) — corresponding to an outrageously high fee rate of 94.8%!

    Polymarket Fee Surge Explained: Where Did 90%+ of Extreme Fees Come From?

    What's going on? Is Polymarket going crazy for money? Odaily, based on Polymarket's official disclosure and community investigation, found that the direct cause of this unexpected situation was that Polymarket modified the platform's fee formula last night, with three versions of changes:

    · First was the "old formula" introduced since March 30: fee = C × p × feeRate × (p × (1 - p))^exponent;

    · Then came the first modification, the formula that caused the unexpected situation (referred to as the "abnormal formula"): fee = C × feeRate × (p × (1 - p))^exponent;

    · Subsequently, after realizing the issue, Polymarket made corrections, resulting in the current version of the "new formula": fee = C × feeRate × p × (1 - p);

    · It's important to note that in all three formulas, C refers to the number of shares traded, p refers to the share price, and feeRate and exponent are variables.

    Decoding the Abnormal Formula, How Did the 94.8% Outrageous Fee Rate Occur?

    You don't need to worry too much about the math details. By comparing the "Old Formula" and "Anomalous Formula," you can easily see that the latter only removes one "× p" (this is the multiplication symbol, not the lowercase x), meaning it ultimately multiplies the share price one less time.

    Since the price of all shares on Polymarket is always less than 1 USD, this will inevitably lead to a overall increase in fees. The lower the price of shares, the more significant the fee increase due to skipping one multiplication — when the share price approaches 0, the fee rate may become absurdly high.

    As for how absurd this fee can become, it also depends on the same variable ^exponent present in both the Old Formula and Anomalous Formula. Translated directly, ^exponent means "raised to the power of exponent," and this variable is mainly used to control the steepness of the fee curve.

    According to Polymarket staff member Mustafa, the anomaly formula introduced last night only included the exponent in two types of markets: "Weather" and "Economic." According to overseas KOL Quant Chad (@Autonomous_Chad), the exponent parameter set for these two major markets at the time was 0.5.

    Now, going back to Frosen's case and plugging the corresponding numbers into the equation fee = C × feeRate × (p × (1 - p))^exponent from this anomaly formula. Knowing that C equals 100, meaning Frosen wants to place an order for 100 shares; p equals 0.001, meaning 0.001 USD (0.1 cents); exponent equals 0.5, meaning another power operation on (p × (1 - p)); the final fee rate is 94.8%.

    By feeding this to an AI directly, you can reverse-engineer that the feeRate level at that time was around 0.03, while also reconstructing the formula calculation details that Polymarket applied to this order.

    In simple terms, Polymarket calculated, based on the anomalous formula, that the fee for this order should be 0.0948 USD. Since Polymarket deducts the corresponding value of shares directly from the buy order, and the share price at the time was only 0.001 USD, it needed to deduct 94.8 shares. Therefore, Frosen would ultimately receive only 5.2 shares, even if the prediction is correct, the potential profit would only be 5.2 USD.

    Polymarket Remedial Action

    Shortly after the anomalous fee issue arose, Polymarket promptly responded by modifying the formula to its current version, fee = C × feeRate × p × (1 - p). Compared to the anomalous formula, the new formula removed the '^exponent'—effectively raising the exponent parameter from 0.5 to 1 in the anomalous formula fee = C × feeRate × (p × (1 - p))^exponent.

    In the anomalous formula, the '^exponent' effect was to perform another power operation on the p × (1-p) data set. In Polymarket's actual operational scenario, the theoretical result range of p × (1 - p) is between '0.000999 - 0.25'—as p approaches 0.5 (shares price approaches $0.5), this data set gets closer to 0.25; when p approaches 0 or 1 (shares price approaches 0 or $1, with extreme quotes at $0.001 and $0.999), this data set gets closer to 0.000999.

    Within the '0.000999 - 0.25' range, regardless of the value taken, raising the exponent parameter from 0.5 to 1 directly reduces the final fee result in the formula calculation, thereby decreasing the overall cost.

    More importantly, this reduction has a more pronounced inhibitory effect on exceptionally high fees near very low price levels—when p × (1-p) = 0.000999, the fee under the new formula is only about 3.16% of the fee under the anomalous formula, representing a decrease of approximately 96.84%; when p × (1-p) = 0.25, the fee under the new formula is 50% of the fee under the anomalous formula.

    As indicated in the Polymarket official documentation, following the implementation of the new formula, fee rates at extremes in the 'Weather' and 'Economics' market categories have now decreased to 5%.

    How Can Retail Users Avoid Fees?

    I know most users are lazy to look at the above formula, but are also concerned about Polymarket's current fee issue.

    In response to this, Mustafa mentioned on the official Discord: "If you're worried about fees, you can place limit orders for free, and after this new update, you can also receive a 20%-25% maker rebate—this means that when your limit order is executed, you will receive 20%-25% of the taker fee, essentially enabling you to not only trade for free but also potentially earn rewards by trading and providing competitive liquidity."

    So let's change our habits, try not to market buy directly anymore, switch to using limit orders more often, and you can also try using Polymarket's Split feature more frequently, indirectly build your position by selling the other side of the shares through a reverse limit order.

    Original Article Link

    -- Price

    --
    --
    --

    This content is provided for general informational purposes only and doesn't constitute financial, investment, legal, or tax advice. Any events, rewards, online promotions, or related information mentioned herein should not be considered a recommendation, solicitation, or invitation to purchase, sell, trade, or otherwise deal in any crypto assets. Crypto assets are highly volatile and may result in loss. The availability of WEEX services, products, and related events may vary by region. You are responsible for ensuring that your participation is in accordance with applicable local laws and regulations.

    You may also like

    Jane Street Loses $15 Billion in July Due to AI Fund Collapse

    Jane Street Loses $15 Billion in July Due to AI Fund Collapse

    Scale Labs Unveils AI Prediction Market Sandbox Agent Fit

    Scale Labs Unveils AI Prediction Market Sandbox Agent Fit

    Helio Protocol's XAUT ecosystem has reached a strategic cooperation with Dephy and APRO

    Helio Protocol's XAUT ecosystem has reached a strategic cooperation with Dephy and APRO

    Helio Protocol's XAUT gold stablecoin ecosystem has announced a strategic partnership with Dephy and APRO, aiming to jointly promote the application of AI intelligent quantitative systems in the fields of gold stablecoins, RWA (real-world assets on-chain), and DeFi.It is reported that this collabora...
    Trump appoints Todd Blanche, the author of the cryptocurrency enforcement memorandum, as acting Attorney General

    Trump appoints Todd Blanche, the author of the cryptocurrency enforcement memorandum, as acting Attorney General

    According to CoinDesk, President Trump has removed Attorney General Pam Bondi from her position and appointed his former personal lawyer, current Deputy Attorney General Todd Blanche, as acting Attorney General. Blanche previously represented Trump in handling criminal cases in New York, and after t...
    Founder of DeepSeek's magic square quantitative strategy achieved a 56.55% return last year, with assets under management exceeding 700 billion yuan

    Founder of DeepSeek's magic square quantitative strategy achieved a 56.55% return last year, with assets under management exceeding 700 billion yuan

    BlockBeats News, January 14th. According to a report by 21st Century Business Herald citing the latest data from the private placement network RankingBall, the average annual return of DeepSeek founder Liang Wenfeng's Huansquare Quant for 2025 reached 56.55%, ranking second in the performance list o...
    Champion Crowned at WEEX AI Hackathon: Revealing Strategy That Won $600K

    Champion Crowned at WEEX AI Hackathon: Revealing Strategy That Won $600K

    A trader with only 6 months of AI trading experience won $600,000 at the WEEX AI Hackathon. Discover the strategy, tools, and lessons behind this breakthrough victory.

    From CTA to AI: The Evolution of Adaptive Quant Strategies in Crypto Markets

    From CTA to AI: The Evolution of Adaptive Quant Strategies in Crypto Markets

    Explore how an LLM-powered AI market-neutral trading strategy achieved a 2.75 Sharpe ratio with controlled drawdown. Inside crypto_trade’s adaptive hedging system at the WEEX AI Trading Hackathon.

    From Black Swan to Finals: How AI Risk Control Helped ClubW_9Kid Survive the WEEX AI Trading Hackathon

    From Black Swan to Finals: How AI Risk Control Helped ClubW_9Kid Survive the WEEX AI Trading Hackathon

    Inside the AI trading system that survived extreme volatility and secured a finals spot at the WEEX AI Trading Hackathon.

    $1M+ AI Trading Finals: Hubble AI & WEEX Spotlight the Future of Crypto Trading

    $1M+ AI Trading Finals: Hubble AI & WEEX Spotlight the Future of Crypto Trading

    The WEEX AI Trading Hackathon Finals are now live, featuring real-time PnL leaderboards, daily rankings, and in-depth AMA sessions. Explore how top AI trading strategies perform under real market volatility and follow the competition as it unfolds.

    Key Market Intelligence on January 21st, how much did you miss?

    Key Market Intelligence on January 21st, how much did you miss?

    1. On-chain Flows: $34.5M USD inflow to Arbitrum today; $51M USD outflow from Hyperliquid 2. Biggest Gainers and Losers: $SKR, $NOCK 3. Top News: memes sees over 160% rebound in 2 hours, market cap rises to $13.69M
    What Is AI Trading in Crypto Markets and Why WEEX Alpha Awakens Matters in 2026

    What Is AI Trading in Crypto Markets and Why WEEX Alpha Awakens Matters in 2026

    Learn what AI trading is and how WEEX Alpha Awakens tests AI trading strategies in live crypto markets, helping traders evaluate real AI trading platforms in 2026.

    Founder of DeepSeek’s Magic Square Quantitative Strategy Achieved a 56.55% Return in 2025

    Founder of DeepSeek’s Magic Square Quantitative Strategy Achieved a 56.55% Return in 2025

    Key Takeaways Huansquare Quant, led by Liang Wenfeng, achieved a 56.55% return in 2025. The fund’s assets under…

    Make Money While Making It Rain: Check Out the Recent Developments of These Top Perp DEXes

    Make Money While Making It Rain: Check Out the Recent Developments of These Top Perp DEXes

    Who dares to say you don't understand Perp DEX after reading this
    Ripple and SBI Team Up for RLUSD Stablecoin Launch in Japan by Early 2026

    Ripple and SBI Team Up for RLUSD Stablecoin Launch in Japan by Early 2026

    Latest Crypto Market Snapshot as of August 22, 2025 BTC Soars to $115,250.00 ETH Hits $4,450.75 XRP Climbs…

    Cryptocurrency for Advisors: Why Clients Have Already Outpaced Their Financial Advisors

    Cryptocurrency for Advisors: Why Clients Have Already Outpaced Their Financial Advisors

    The topic of "cryptocurrency for advisors" is becoming increasingly pressing: clients have been holding digital assets for years, incorporating them into inheritance plans, and expecting advisors to provide not just general discussions but real assistance with storage, taxes, reporting, and transfer...
    Four years ago, a cryptocurrency mogul disappeared; now his successor has vanished

    Four years ago, a cryptocurrency mogul disappeared; now his successor has vanished

    New Meme Coin Launch 2026: MemeToro Brings AI-Powered Discovery to the BNB Chain

    New Meme Coin Launch 2026: MemeToro Brings AI-Powered Discovery to the BNB Chain

    Stablecoin payments are fast, but local-currency settlement remains a bottleneck: Gravity Team CEO

    Stablecoin payments are fast, but local-currency settlement remains a bottleneck: Gravity Team CEO

    Amazon Device Price Increase: Echo Dot Costs 60% More

    Amazon Device Price Increase: Echo Dot Costs 60% More

    A Study Reveals the Weight of Convictions Among Crypto Investors

    A Study Reveals the Weight of Convictions Among Crypto Investors

    Crypto Attacks in France: Suspect M1llionz Shows Off on TikTok

    Crypto Attacks in France: Suspect M1llionz Shows Off on TikTok

    How Cryptocurrency Transfers Abroad Will Be Organized Starting September 1

    How Cryptocurrency Transfers Abroad Will Be Organized Starting September 1

    Starting September 1, cryptocurrency transfers abroad will be available to individuals, sole proprietors, and companies engaged in foreign economic transactions, announced Alexey Korolenko, CEO of the crypto broker Cifra Markets. However, within Russia, cryptocurrency settlements will still remain p...
    Will Crypto-Trump Cause a Pump?

    Will Crypto-Trump Cause a Pump?

    Crypto-Trump has once again become one of the main topics in the cryptocurrency segment of social media: users are discussing the theory that Donald Trump's administration may support the market with a series of positive announcements ahead of the November elections for the U.S. Congress, as it did ...
    Hyperliquid Policy Center pushes SEC, CFTC for equity perps framework

    Hyperliquid Policy Center pushes SEC, CFTC for equity perps framework

    6GW Nuclear Power Supply Agreement: Non-Binding Framework with Nano Nuclear and Tillman

    6GW Nuclear Power Supply Agreement: Non-Binding Framework with Nano Nuclear and Tillman

    Nano Nuclear Energy (NANO Nuclear Energy·$NNE) has entered into a non-binding commercial framework with Tillman affiliates to explore a power supply plan for micro-reactors exceeding 6GW in the U.S. AI industrial zone.
    Taxes: Who Gained and Who Lost from the Changes Implemented by Javier Milei

    Taxes: Who Gained and Who Lost from the Changes Implemented by Javier Milei

    The government "returned to the private sector" the equivalent of 3 points of GDP, as stated by the President. However, some sectors received more while others lost.
    Bitcoin Breaks Free, Altcoins Take the Stage – Steady Lads

    Bitcoin Breaks Free, Altcoins Take the Stage – Steady Lads

    Bitcoin, Ethereum, and the entire crypto market have surged in recent days. Cara from Steady Lads analyzes all of this.
    Is Zhao Changpeng Still at the Poker Table After the Peace Hotel?

    Is Zhao Changpeng Still at the Poker Table After the Peace Hotel?

    Ika-Based Wallet Expands for AI Agents

    Ika-Based Wallet Expands for AI Agents

    human.tech has expanded the Ika network-based wallet protocol into a distributed signature infrastructure for AI agents and decentralized applications. The wallet is designed to combine distributed signatures and authority control.
    Artificial Intelligence: The AI Bubble Won't Burst, It Will Just Deflate

    Artificial Intelligence: The AI Bubble Won't Burst, It Will Just Deflate

    The AI bubble is not expected to burst suddenly according to several economists; it will slowly deflate and sort the winners from the losers.

    Jane Street Loses $15 Billion in July Due to AI Fund Collapse

    Scale Labs Unveils AI Prediction Market Sandbox Agent Fit

    Helio Protocol's XAUT ecosystem has reached a strategic cooperation with Dephy and APRO

    Helio Protocol's XAUT gold stablecoin ecosystem has announced a strategic partnership with Dephy and APRO, aiming to jointly promote the application of AI intelligent quantitative systems in the fields of gold stablecoins, RWA (real-world assets on-chain), and DeFi.It is reported that this collabora...

    Trump appoints Todd Blanche, the author of the cryptocurrency enforcement memorandum, as acting Attorney General

    According to CoinDesk, President Trump has removed Attorney General Pam Bondi from her position and appointed his former personal lawyer, current Deputy Attorney General Todd Blanche, as acting Attorney General. Blanche previously represented Trump in handling criminal cases in New York, and after t...

    Founder of DeepSeek's magic square quantitative strategy achieved a 56.55% return last year, with assets under management exceeding 700 billion yuan

    BlockBeats News, January 14th. According to a report by 21st Century Business Herald citing the latest data from the private placement network RankingBall, the average annual return of DeepSeek founder Liang Wenfeng's Huansquare Quant for 2025 reached 56.55%, ranking second in the performance list o...

    Champion Crowned at WEEX AI Hackathon: Revealing Strategy That Won $600K

    A trader with only 6 months of AI trading experience won $600,000 at the WEEX AI Hackathon. Discover the strategy, tools, and lessons behind this breakthrough victory.

    ...
    100,000 USDT in rewards awaits
    Trade stock tokens with 0 fees—get 10 USDT on your first trade
    100,000 USDT in rewards awaitsUnlock up to 800 USDT

    Contents

    Decoding the Abnormal Formula, How Did the 94.8% Outrageous Fee Rate Occur?
    Polymarket Remedial Action
    How Can Retail Users Avoid Fees?
    quant

    Latest articles

    04/01/2026

    Polymarket Fee Surge Explained: Where Did 90%+ of Extreme Fees Come From?

    The new fee schedule has had a significant impact, with Polymarket's daily revenue now ranking 7th among crypto protocols.
    QNTQNT
    00.00%--
    03/12/2026

    Champion Crowned at WEEX AI Hackathon: Revealing Strategy That Won $600K

    A trader with only 6 months of AI trading experience won $600,000 at the WEEX AI Hackathon. Discover the strategy, tools, and lessons behind this breakthrough victory.

    SCRTSCRT
    00.00%--
    JSTJST
    00.00%--
    QNTQNT
    00.00%--
    03/02/2026

    From CTA to AI: The Evolution of Adaptive Quant Strategies in Crypto Markets

    Explore how an LLM-powered AI market-neutral trading strategy achieved a 2.75 Sharpe ratio with controlled drawdown. Inside crypto_trade’s adaptive hedging system at the WEEX AI Trading Hackathon.

    CROSSCROSS
    00.00%--
    JSTJST
    00.00%--
    QNTQNT
    00.00%--
    02/23/2026

    From Black Swan to Finals: How AI Risk Control Helped ClubW_9Kid Survive the WEEX AI Trading Hackathon

    Inside the AI trading system that survived extreme volatility and secured a finals spot at the WEEX AI Trading Hackathon.

    JSTJST
    00.00%--
    QNTQNT
    00.00%--
    BTCBTC
    00.00%--
    02/11/2026

    $1M+ AI Trading Finals: Hubble AI & WEEX Spotlight the Future of Crypto Trading

    The WEEX AI Trading Hackathon Finals are now live, featuring real-time PnL leaderboards, daily rankings, and in-depth AMA sessions. Explore how top AI trading strategies perform under real market volatility and follow the competition as it unfolds.

    QNTQNT
    00.00%--
    More

    Latest coin listings on WEEX

    logoCommunity
    iconiconiconiconiconiconicon
    Customer Support:@weikecs
    Business Cooperation:@weikecs
    Quant Trading & MM:bd@weex.com
    VIP Program:support@weex.com
    • About Us
    • Announcement Center
    • Media Kit
    • WEEX Community
    • WXT Zone
    • Announcement
    • Legal Statement
    • Risk Disclosure
    • Terms and Policies
    • Privacy Policy
    • Whistleblower Notice
    • AML/CTF Policy
    • Law Enforcement
    • User Guide
    • Product Launches
    • Crypto News
    • Product Launches
    • Crypto Wiki
    • Learn
    • Q&A
    • Spot
    • Futures
    • Glossary
    • VIP Program
    • Download
    • Affiliate
    • Protection Fund
    • Proof of Reserves
    • Sitemap
    • ETFs
    • Crypto Prices
    • Price Predictions
    • WXT Price
    • BTC Price
    • ETH Price
    • DOGE Price
    • How to Buy Crypto
    • How to Buy WXT
    • How to Buy BTC
    • How to Buy ETH
    • How to Buy DOGE
    • Help Center
    • Fee Schedule
    • Trading Rules
    • WEEX Academy
    • Contact Verifier
    • Submit Feedback
    • About Us
    • Announcement Center
    • Media Kit
    • WEEX Community
    • WXT Zone
    • Announcement
    • Help Center
    • Fee Schedule
    • Trading Rules
    • WEEX Academy
    • Contact Verifier
    • Submit Feedback
    • Customer Support Bot
    • VIP Services
    • Legal Statement
    • Risk Disclosure
    • Terms and Policies
    • Privacy Policy
    • Whistleblower Notice
    • AML/CTF Policy
    • Law Enforcement
    • Proof of Reserves
    • Invite Friends
    • OTC
    • Download
    • Affiliate
    • VIP Program
    • API
    • Broker
    • Listing Application
    • Affiliate T&C
    • Sitemap
    • Futures
    • Spot
    • Copy Trade
    • Markets
    • WEEX Store
    • User Guide
    • Product Launches
    • Crypto News
    • Product Launches
    • Crypto Wiki
    • Learn
    • Q&A
    • Spot
    • Futures
    • Glossary
    • VIP Program
    • Download
    • Affiliate
    • Protection Fund
    • Proof of Reserves
    • Sitemap
    • ETFs
    • Crypto Prices
    • Price Predictions
    • WXT Price
    • BTC Price
    • ETH Price
    • DOGE Price
    • How to Buy Crypto
    • How to Buy WXT
    • How to Buy BTC
    • How to Buy ETH
    • How to Buy DOGE
    • About Us
    • Announcement Center
    • Media Kit
    • WEEX Community
    • WXT Zone
    • Announcement
    • Help Center
    • Fee Schedule
    • Trading Rules
    • WEEX Academy
    • Contact Verifier
    • Submit Feedback
    • Legal Statement
    • Risk Disclosure
    • Terms and Policies
    • Privacy Policy
    • Whistleblower Notice
    • AML/CTF Policy
    • Law Enforcement
    • Customer Support Bot
    • VIP Services
    • Futures
    • Spot
    • Copy Trade
    • Markets
    • WEEX Store
    • Proof of Reserves
    • Invite Friends
    • OTC
    • Download
    • Affiliate
    • VIP Program
    • API
    • Broker
    • Listing Application
    • Affiliate T&C
    • Sitemap
    • User Guide
    • Product Launches
    • Crypto News
    • Product Launches
    • Crypto Wiki
    • Learn
    • Q&A
    • Spot
    • Futures
    • Glossary
    • VIP Program
    • Download
    • Affiliate
    • Protection Fund
    • Proof of Reserves
    • Sitemap
    • ETFs
    • Crypto Prices
    • Price Predictions
    • WXT Price
    • BTC Price
    • ETH Price
    • DOGE Price
    • How to Buy Crypto
    • How to Buy WXT
    • How to Buy BTC
    • How to Buy ETH
    • How to Buy DOGE

    Where new wealth is made

    Download app

    Sign Up
    h5 logo
    Download