Understanding Polymarket Fees

Trading fees confusing? Network costs unclear? This guide breaks down all Polymarket fees: trading fees, network gas costs, slippage, and how to minimize expenses so you keep more of your profits.

Why This Happens

Understanding Polymarket fees is crucial because costs add up quickly. Many traders underestimate total expenses, especially when combining trading fees, network gas costs, and slippage. On Ethereum network, a single trade can cost $10-100+ in gas alone, making small trades unprofitable.

Trading fees are straightforward—Polymarket charges a percentage on each position. But network fees fluctuate dramatically based on blockchain congestion. During peak times, Ethereum gas prices spike 10-50x, turning a $5 transaction into a $50+ expense. Polygon network solves this with consistent sub-cent fees, making frequent trading viable.

Slippage is another hidden cost that catches traders off guard. When markets lack liquidity, large orders execute at worse prices than expected. A $1,000 position might execute at $990 due to slippage—that's an additional 1% cost on top of trading and gas fees.

How to Fix It

Solution 1: Use Polygon Network

The Problem: High gas fees eating into profits, especially on Ethereum.

1. Switch to Polygon: Always use Polygon network for all Polymarket transactions
2. Bridge funds to Polygon: Move your funds from Ethereum to Polygon (see our USDC bridge guide)
3. Trade on Polygon: All transactions cost 0.001-0.01 MATIC vs $5-50+ on Ethereum
4. Keep MATIC for gas: Maintain 0.01-0.1 MATIC in your wallet for transaction fees
5. Monitor gas costs: Even on Polygon, check gas estimates before confirming

Cost Savings: Switching from Ethereum to Polygon can save $10-100+ per transaction, making frequent trading profitable.

Solution 2: Minimize Trading Frequency

The Problem: Too many small trades—gas costs add up quickly.

1. Plan trades: Batch multiple trades instead of trading frequently
2. Use limit orders: Set limit orders to avoid constant monitoring
3. Trade larger positions: Larger positions reduce gas fee percentage
4. Avoid micro-trades: Don't trade tiny amounts—gas costs exceed profits
5. Wait for best opportunities: Quality over quantity reduces total fees

Solution 3: Control Slippage

The Problem: Orders executing at worse prices than expected due to slippage.

1. Trade liquid markets: Markets with high volume have less slippage
2. Use limit orders: Limit orders control execution price precisely
3. Split large orders: Break large positions into smaller chunks
4. Check liquidity: Review order book depth before trading
5. Monitor slippage tolerance: Set maximum acceptable slippage

Solution 4: Optimize Transaction Timing

The Problem: Trading during high congestion costs extra gas fees.

1. Check gas prices: Use ETH Gas Station or similar tools before trading
2. Trade off-peak hours: Network congestion is lower during off-peak times
3. Monitor weekends: Gas prices often spike during major events
4. Wait for lower gas: If not urgent, wait for gas prices to drop
5. Use Polygon: Polygon gas prices are stable regardless of timing

Fee Breakdown

Trading Fees

• Fee Structure: 1-2% per position (entry and exit)
• Example: $100 position = $1-2 fee on entry + $1-2 on exit
• Total Cost: 2-4% round trip (entry + exit)
• When Charged: Deducted from position value at execution
• Volume Discounts: High-volume traders may receive fee discounts

Network Gas Fees

Ethereum Network:

• Low Congestion: $5-10 per transaction
• Medium Congestion: $15-30 per transaction
• High Congestion: $30-100+ per transaction
• Best For: Large positions, infrequent trading
• Avoid For: Small trades, frequent trading

Polygon Network:

• Consistent Cost: 0.001-0.01 MATIC (~$0.001-0.01) per transaction
• Never Spikes: Gas prices remain stable regardless of congestion
• Best For: All trading, especially frequent or small positions
• Always Prefer: Polygon for cost efficiency

Slippage

• Definition: Difference between expected and execution price
• Typical Range: 0.1-2% in liquid markets, 2-5%+ in illiquid markets
• Example: $1,000 order in illiquid market executes at $980 (2% slippage)
• Control: Use limit orders and trade liquid markets

Total Cost Examples

Example 1: Small Trade on Ethereum

• Position Size: $100
• Trading Fee: $2 (2%)
• Gas Fee: $15 (Ethereum)
• Slippage: $1 (1%)
• Total Cost: $18 (18%)

Result: Unprofitable for small trades on Ethereum

Example 2: Small Trade on Polygon

• Position Size: $100
• Trading Fee: $2 (2%)
• Gas Fee: $0.01 (Polygon)
• Slippage: $1 (1%)
• Total Cost: $3.01 (3.01%)

Result: Profitable for small trades on Polygon

Example 3: Large Trade on Ethereum

• Position Size: $10,000
• Trading Fee: $200 (2%)
• Gas Fee: $20 (Ethereum)
• Slippage: $50 (0.5%)
• Total Cost: $270 (2.7%)

Result: Acceptable for large positions

Common Questions

Prevention Tips

• Always use Polygon: Switch to Polygon for all transactions to save on gas
• Plan trades: Batch trades instead of frequent small transactions
• Trade liquid markets: High-volume markets have less slippage
• Use limit orders: Control execution prices precisely
• Check gas before trading: Monitor gas prices before confirming transactions
• Calculate total costs: Factor in trading fees, gas, and slippage before trading
• Avoid micro-trades: Small trades on Ethereum are unprofitable due to gas costs