Fees and Commissions
Yoyo Market (hereinafter “Yoyo”) applies a percentage-based fee on every trade. Fees are charged to both the buyer and the seller at the time of execution.
Fee Calculation
The fee percentage is configured at the platform level (the lmsr.FeePercent setting) and applies uniformly to all trades on both orderbook and LMSR AMM markets.
Buying
When you buy tokens, the fee is added on top of the execution price:
cost = price * (1 + fee%)
Example: You buy YES tokens at a price of 6000 (60%) with a 2% fee:
cost = 6000 * (1 + 0.02) = 6000 * 1.02 = 6120 per share
You pay 6120 cents per share. Of that, 6000 goes to the seller (or AMM) and 120 is the fee.
Selling
When you sell tokens, the fee is deducted from the execution price:
payout = price * (1 - fee%)
Example: You sell YES tokens at a price of 6000 (60%) with a 2% fee:
payout = 6000 * (1 - 0.02) = 6000 * 0.98 = 5880 per share
You receive 5880 cents per share. The remaining 120 is the fee.
Fee Summary Table
| Action | Formula | You Pay / Receive |
|---|---|---|
| Buy | price * (1 + fee%) | You pay more than the raw price |
| Sell | price * (1 - fee%) | You receive less than the raw price |
Referral Fee Distribution
A portion of every collected fee is distributed to users who referred the trader, across three levels of the referral chain:
| Level | Relationship | Share of Fee |
|---|---|---|
| Level 1 | Direct referrer | 15% of the fee |
| Level 2 | Referrer's referrer | 4% of the fee |
| Level 3 | Three levels up | 1% of the fee |
| Platform | Remainder | 80% of the fee |
Referral Example
A trade generates a fee of 120 cents. The trader was referred by User A, who was referred by User B, who was referred by User C:
| Recipient | Calculation | Amount |
|---|---|---|
| User A (L1) | 120 * 15% | 18 cents |
| User B (L2) | 120 * 4% | 4.8 cents |
| User C (L3) | 120 * 1% | 1.2 cents |
| Platform | 120 * 80% | 96 cents |
If any referral level is missing (e.g., the trader has no referrer), that portion stays with the platform.
Key Points
- Fees are applied per trade, not per order. A single order that fills in multiple trades incurs fees on each individual trade.
- Both sides of a trade pay fees independently. The buyer pays
price * (1 + fee%)and the seller receivesprice * (1 - fee%). - The fee percentage is the same for orderbook trades and LMSR AMM trades.
- Referral payouts are credited to referrers' balances automatically after each trade.
See Also
- Placing Orders — How to submit orders
- AMM Trading — Fees in the context of LMSR trades
- Matching Engine — How trades are executed in orderbook markets