Polymarket Revises Fees After Misapplying Dollar Taker Volume Formula

According to Polymarket’s official statement, a March 30 fee formula update briefly pushed charges to 94.8% in some low-priced weather and economy contracts before a revised model reduced extreme-case fees to 5%.

Summary

In an official announcement, Polymarket said a fee formula change introduced on March 30 briefly caused charges as high as 94.8% on low-priced shares in weather and economy markets. The platform later revised the model, and Polymarket states that extreme-case fees in those affected markets have now fallen to 5%. The update adds to earlier disclosures that the platform had misapplied a dollar taker volume-based formula in markets where very low share prices amplified fee outcomes.

Terms & Concepts
  • Taker volume: The amount traded by users who remove liquidity by matching existing orders in an order book market.