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.