> For the complete documentation index, see [llms.txt](https://docs.punch.win/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.punch.win/market-structure/market-structure/fees.md).

# Fees

Learn how PUNCH.WIN calculates taker fees, which actions are fee-exempt, and how 50% of fees are redistributed to makers.

{% hint style="info" %}
Fees are charged only to Takers. Makers pay 0% fees + receive Rebate. [Maker Rebate](/market-structure/market-structure/maker-rebate.md)\
Fee Rate varies by market expiry. See [FeeRate by Market](#feerate-by-market) below.
{% endhint %}

***

## Fee Formula

```
fee = feeRate × Shares × p × (1 - p)
```

| Variable  | Description      | Value                        |
| --------- | ---------------- | ---------------------------- |
| `feeRate` | Fee rate         | Varies by market (see below) |
| `Shares`  | Number of shares | —                            |
| `p`       | Price            | $0.001 – $0.999              |

> Fees are highest at $0.500 (50/50 odds) and decrease as the price moves toward $0.001 or $0.999 (heavily skewed odds).

### FeeRate by Market

<table data-search="false"><thead><tr><th>Market</th><th>FeeRate</th><th>Max Fee per Share (@ $0.500)</th></tr></thead><tbody><tr><td><strong>1-Minute Markets</strong></td><td>0.500</td><td>$0.12500</td></tr><tr><td><strong>3-Minute Markets</strong></td><td>0.300</td><td>$0.07500</td></tr><tr><td><strong>5-Minute Markets</strong></td><td>0.100</td><td>$0.02500</td></tr><tr><td><strong>1-Hour Markets</strong></td><td>0.050</td><td>$0.01250</td></tr><tr><td><strong>Daily Markets</strong></td><td>0.050</td><td>$0.01250</td></tr><tr><td><strong>Sports Markets</strong></td><td>0.100</td><td>$0.02500</td></tr><tr><td><strong>Other Markets</strong></td><td>0.025</td><td>$0.00625</td></tr></tbody></table>

***

## Fee by Price

Fee per Share = `feeRate × p × (1 - p)`.

| Price           | p × (1-p) | 1-Min (0.500) | 3-Min (0.300) | 5-Min / Sports (0.100) | 1-Hour / Daily (0.050) | Other (0.025) |
| --------------- | --------- | ------------- | ------------- | ---------------------- | ---------------------- | ------------- |
| **$0.500**      | 0.25      | **$0.125**    | **$0.075**    | **$0.025**             | **$0.0125**            | **$0.00625**  |
| $0.250 / $0.750 | 0.1875    | $0.09375      | $0.05625      | $0.01875               | $0.00938               | $0.00469      |
| $0.100 / $0.900 | 0.09      | $0.045        | $0.027        | $0.009                 | $0.0045                | $0.00225      |
| $0.001 / $0.999 | 0.000999  | $0.0005       | $0.0003       | $0.0001                | $0.00005               | $0.00002      |

***

## Fee Calculation Examples

All examples use **100 Shares @ $0.650**, where `p × (1-p) = 0.2275`.

{% tabs %}
{% tab title="1-Min Market" %}
**100 Shares @ $0.650, FeeRate 0.500**

```
fee   = 0.500 × 100 × 0.650 × 0.350 = $11.375
total = 100 × 0.650 = $65.000
Total cost = 65.000 + 11.375 = $76.375
```

{% endtab %}

{% tab title="3-Min Market" %}
**100 Shares @ $0.650, FeeRate 0.300**

```
fee   = 0.300 × 100 × 0.650 × 0.350 = $6.825
total = 100 × 0.650 = $65.000
Total cost = 65.000 + 6.825 = $71.825
```

{% endtab %}

{% tab title="5-Min / Sports Market" %}
**100 Shares @ $0.650, FeeRate 0.100**

```
fee   = 0.100 × 100 × 0.650 × 0.350 = $2.275
total = 100 × 0.650 = $65.000
Total cost = 65.000 + 2.275 = $67.275
```

{% endtab %}

{% tab title="1-Hour / Daily Market" %}
**100 Shares @ $0.650, FeeRate 0.050**

```
fee   = 0.050 × 100 × 0.650 × 0.350 = $1.138
total = 100 × 0.650 = $65.000
Total cost = 65.000 + 1.138 = $66.138
```

{% endtab %}

{% tab title="Other Market" %}
**100 Shares @ $0.650, FeeRate 0.025**

```
fee   = 0.025 × 100 × 0.650 × 0.350 = $0.569
total = 100 × 0.650 = $65.000
Total cost = 65.000 + 0.569 = $65.569
```

{% endtab %}

{% tab title="Limit Order (Maker)" %}
**100 Shares @ $0.650 → Posted to Orderbook**

```
fee = 0 (Maker fee exemption)
```

> When a Limit order is posted to the Orderbook, it is classified as Maker. Zero fees + eligible for Rebate, regardless of market.
> {% endtab %}
> {% endtabs %}

***

## Fee-Exempt Actions

| Action                      | Fee  |
| --------------------------- | ---- |
| Split                       | None |
| Merge                       | None |
| Limit Order (Maker, posted) | None |

***

## Fee Distribution

50% of Taker fees are automatically paid to Makers as Rebate.