Poly market has introduced trading fees

on some markets. So you can see in the

documentation uh where they say that

most markets on poly market has no

trading fees which is also true but

there is uh the 15-minute crypto markets

which we've been discussing for example

the Bitcoin 15-minute market we have a a

trading fee here. So the 15minute crypto

market charge a small taker fee on each

trade and that's a taker fee which is

going to be important here later in our

discussion. These fees are collected and

redistributed daily to market makers as

rebates incentivizing devil liquidity

and tighter spreads.

So it's actually a fee that they take

from the makers and then they re

redistribute it to the megas.

And what's the difference about those

two? I'll try to explain that. So yeah,

there's um whole lot of explanation here

and basically how the mega rebates work

is they are paid daily in USDC. Rebates

are calculated and distri distributed

every day and then it's

performancebased. You earn based on the

share of liquidity you provide that

actually got taken.

So this is for the the mega. So what is

a mega? You can see if we are on the

Bitcoin up and down 15minute market. You

can see here we have this indicator that

we actually have mega rebate or in other

words we have fees on this market. And u

it says here earn daily USDC rebates by

placing limit orders that gets filled.

So what is a limit order? A limit order

is basically just an order that rests on

the order book that is not taken

immediately. So, for example, if you put

a trade and you put market, that's going

to be a a tagger

and um and then you'll pay a fee.

If you put a limit order

and let's say that it rests somewhere

here and it's not taken immediately,

then you actually participate in the

mega rebate program, but only if it's

taken later. So if it's taken right

away, you pay a fee. But if it rests on

the order book and it's taken

later, then you actually can earn money

on that. So the the timeline here is

kind of fluffy a little bit. We don't

know like how long time does it have to

rest on the order book before you get

the rebate and how long time you know

does it take before it's it's a it's a

mega order and it's and and you actually

pay a fee. So that's kind of a little

bit gray zone. We don't really know.

It's not stated in the in the

documentation. Um we have the the the

the fee structure. That's the take a fee

structure here.

which um

which looks like this. Okay. So you have

here on the x-axis we have you have the

price of the share right. So that's up

or down.

So zero represents down and and one

represents up you know 100% and uh 0%.

And then you have the fee over here from

zero to 1 1.56%.

So the longer you go towards the middle

of the price, so like 50 cent,

the higher the fee you pay. So you can

see here the table here, which

represents 100 shares.

You can see how in uh in the middle, the

effective rate on on a share that cost

50 cent is going to be 1.56.

So that's obviously where you'll pay the

most fees. So in this example, if you

put $50

US as trade value, you actually pay a

fee of $0.78.

So that's the m maximum effective rate,

$1.56.

Now, here's the here's the kicker about

these uh these um rebates. So look at

this here. Now, today is um 13 January.

So from the period 9 of January to 11th

of January, the mega rebate was 100%.

I don't know what it was before this

period or if there was any at all. But

then from yesterday,

January 12th to January 18, the mega

rebate is uh 20%.

So that actually means that the poly

market collects now 80% of all the the

fees collected on these 15 15minute

markets. Okay, now this might actually

explain our guy here, account 88888.

Okay, because we talked about him in the

other video and look at this. So, one

day profit loss is 0.9. So, he actually

not made any profits. Let's say if we

take a week here.

So since

January 6, seems like he almost did not

trade January 6. And then if we go back

here, oh, sorry, I'm saying something

wrong now. January 9.

Um, there was still make a rebate 100.

So that ended 11. So it seems like he he

uh he stopped his bot before that.

So with zone 11

is here and he actually stopped it just

before. So I don't know if we can

explain this from that. But if you look

at his uh activity,

he did have a make a rebate here just 3

days ago for for almost $2,000. So that

is definitely an income this guy he got

from from his trading bot. But if it

explains all of the performance is hard

to say, right?

But yeah, so this bot has not been

active and so that could possibly be

the these fees. So So maybe it's because

the fees has actually been enabled on

January 9. That that that probably is

the case, right? Because January 9.

Yeah, he stopped it. He he stopped it on

January 9.

So yeah, so this is where we got the

fee, I guess. And please correct me if

I'm wrong if if if it's not enabled on 9

of January. Um but that's here that he

stopped his spot. And that kind of

correlates with with uh with these. And

now yeah, the again the kicker is uh we

don't even have the 100% rebates

anymore. So, so in in this period it was

probably very viable to make decent

amount of money putting trades on the on

the u on the order book having them rest

on the order book and been taken again a

little bit risky also right we have to

figure out how to if it's only taken on

one side how are we going to hedge the

other side but now it it doesn't seem

like that's very viable

um to do it that way for API users if

you use the their APIs to trade

you have to follow

um these instructions here. So if if you

use their official clients,

which uh I currently do, then it's taken

care of. But if you just call the rest

API directly, you need to pass in the

fee rate.

Okay, that that has to be included in

the uh in the signed order. Okay, so

when you sign the order and you send it

to them, you have to pass in the fee

rate.

And um you can get the fee rates on each

of the individual markets. So it is in

the payload the JSON payload with you

when you get the the market. F AQ states

the following. How do I qualify for mega

rebates? Place orders that add liquidity

to the book and gets filled. That is

your liquidity is taken by another

trader.

Okay. So when are rebates paid? Daily in

USDC and that's what we saw on account.

So he got his rebate here make a rebate

3 days ago.

How are rebates calculated? So that's

what we just discussed. Rebates are

proportional to your shares of executed

marker maker liquidity in each eligible

market.

So that's what we just discussed with

the fee structure. Where does the rebate

pool come from? Take a fees collected in

the markets are allocated to the maker

rebate pool and distributed daily.

Which markets have fees enabled?

Currently, only 15inut markets. Only

15minute crypto markets have take a fees

enabled currently. So, we'll see what

happens if they're going to introduce

this to other markets. They probably

will, but right now it's only the

15minute crypto market

and then no crypto polar market is

collecting tea fees only on 15-minute

crypto markets.

So yeah, that's a little bit about the

about the fees and this is going to make

I'm sure these fees are making a lot of

noise with these high frequency trading

bots because what we have been

discussing so far is basically trying to

capture 1% gain um per trade, right? But

here we are talking 1.56 fees% fee on on

potentially some trades. So this

completely elim elim el el el el el el

el el el el el el el el el el el el el

el el el el el el el el el el el el el

el el el el el el el el el el el el el

el el el el el el el el el el el el el

el eliminates

this completely eliminates

profitability of a lot of bots. I'm sure

it it could have been offset by the 100%

mega rebates but since they changed that

to 20% then again yeah it's it's uh

probably devastating for a lot of butts.

Um this one here.

Yeah. So then I guess the last note that

I want to discuss is we don't really

exactly know how they calculate uh these

curves here and we have um

this variable C c= 10 50 100 I don't

know what that is I don't know why they

have three different curves is um is

that proportional to the amount of

amount of shares or what because here in

this table they used the fee table of

100 shares so So we really don't know

what this is. What is C? Is anybody able

to answer what is C here? Because that

means I mean it looks like a big

difference, right? If we have a low C,

then it could be um amount of shares. I

I don't know. But then again, if it's if

if C is 1,000, then how is that going to

look like? So maybe that's that's not

the case. So So yeah, that's the last

note. I hope you enjoyed it. And if you

know what C is or have any other um

ideas about these fee structure, please

leave a comment down below and I'll take

a look at it. Have a good one. See you

on the next video.