Fee Structure

Conviction charges a trading fee on each trade. This page explains how fees are calculated, which token the fee is deducted from, and how referral discounts work.

#Fee Rate (Basis Points)

Each market has a platform fee rate expressed in basis points (bps):

The standard fee rate is 200 bps (2%), though different markets may have different rates.

#Fee Calculation Formula

The fee formula depends on the order side (BUY or SELL):

#Buying Shares (BUY)

When you buy shares, you receive outcome tokens — the fee is deducted from the outcome tokens you receive.

Fee = feeRateBps × min(price, 1 - price) × outcomeTokens / (price × 10000)

#Selling Shares (SELL)

When you sell shares, you receive USDC — the fee is deducted from the USDC you receive.

Fee = feeRateBps × min(price, 1 - price) × outcomeTokens / (10000 × 10^18)

#Key Properties

• min(price, 1 - price) — The fee is based on the lower of the two complementary prices, making it symmetrical around 50¢.
• Fee deduction target — The fee is always deducted from the token being sent to the user: outcome tokens for BUY, USDC for SELL.
• Adjustable per order — Each order can have its own feeRateBps, allowing for fine-grained fee control.

#Example Calculations

#Example 1: Buying YES at 60¢

• Fee Rate = 200 bps (2%)
• Price = 0.60, so min(0.60, 0.40) = 0.40
• Receiving 100 shares
• Fee = 200 × 0.40 × 100 / (0.60 × 10000) = 1.33 shares

#Example 2: Selling YES at 60¢

• Fee Rate = 200 bps (2%)
• Price = 0.60, so min(0.60, 0.40) = 0.40
• Selling 100 shares
• Fee = 200 × 0.40 × 100 / 10000 = 0.80 USDC

#Example 3: Buying YES at 50¢ (maximum fee point)

• Fee Rate = 200 bps (2%)
• Price = 0.50, so min(0.50, 0.50) = 0.50
• Receiving 100 shares
• Fee = 200 × 0.50 × 100 / (0.50 × 10000) = 2.00 shares

#Fee Behavior by Price

The fee structure incentivizes trading in markets with clearer signals and reduces friction for trades on highly probable or improbable outcomes.

#Referral Fee Discount

Conviction offers fee discounts through its referral program. Your discount rate is applied to reduce the operator fee on every trade.

#How Discounts Work

#Example

You were referred (10%) and have invited 15 users (+15%).

• Your total discount = 25%
• On a trade with a 0.80 USDC fee, you pay: 0.80 × (1 - 0.25) = 0.60 USDC

Discounts are calculated automatically and always rounded in the user's favor.

#How to Get a Referral Link

1. Go to the Leaderboard page.
2. Your personal referral link is displayed in the Referral section.
3. Share your link — when someone signs up using it, both of you benefit.

#Key Points

• No fees on split/merge operations — Converting between USDC and outcome shares is free.
• No gas fees — All transaction gas is sponsored by the platform through account abstraction.
• On-chain representation — The fee is expressed in basis points on-chain (e.g., 200 bps = 2%).
• Per-market fee rates — Different markets may have different fee rates, though 2% is the standard.
• Referral discounts stack — Being referred and inviting others combine for up to 30% off.