Trading Fees

Every CalledIt market operates using an on-chain liquidity pool based on the Fixed Product Market Maker (FPMM) model. A small fee is applied to all trades executed through these pools. This fee is retained by the protocol and may be used for liquidity incentives, treasury operations, or ecosystem support.

Fee Structure

A fee is applied to each buy or sell transaction conducted within a market. This fee is expressed as a percentage of the trade value and is deducted at the time of execution.

For example, if a participant purchases 100 USDC worth of shares in an outcome, a 2% fee (or 2 USDC) would be retained by the protocol, and the remaining 98 USDC would be used to calculate the actual number of shares received.

When Fees Are Applied

Fees are applied at the moment a trade is executed, whether buying or selling shares.

  • Buy Transactions: The fee is deducted from the incoming USDC before shares are issued.

  • Sell Transactions: The fee is deducted from the USDC received after shares are redeemed.

  • Claiming Winnings: No fees are applied during claim. Winning shares are redeemable at full face value (1 USDC per share) after market resolution.

  • Invalid Market Refunds: No fees are deducted from invalid market refunds. Each share is refunded at a fixed rate (currently 0.50 USDC per share).

Fee Transparency

Prior to executing any trade, the CalledIt interface provides a clear breakdown of:

  • Estimated share quantity

  • Applied fee amount

  • Final effective trade value

This ensures that participants understand the cost of each transaction before confirming.

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