> ## Documentation Index
> Fetch the complete documentation index at: https://docs.limitless.exchange/llms.txt
> Use this file to discover all available pages before exploring further.

# Fees

> How trading fees work on Limitless Exchange

## Overview

Fees on Limitless adapt to both the **market price** and your **trading experience**. The system is designed to reward early conviction, discourage manipulation, and give loyal traders significant discounts.

## Fee Structure by Market Type

### AMM Markets

A flat **0.40%** fee applies to all trades. No curves, no complexity. Certain promotional or specific markets may have a reduced or zero fee.

### Order Book (CLOB) Markets

Fees are dynamic and adjust based on the current market price:

| Side     | Fee Range     | Paid In                    |
| -------- | ------------- | -------------------------- |
| **Buy**  | 0.40% – 3.00% | Outcome tokens (contracts) |
| **Sell** | 0.42% – 1.50% | Collateral (USDC)          |

## Makers vs Takers

<Warning>
  **Fees only apply to takers** — orders that instantly settle against the orderbook.
</Warning>

| Order Type                 | Fees?      | Details                                                                                                |
| -------------------------- | ---------- | ------------------------------------------------------------------------------------------------------ |
| **Limit orders (makers)**  | No fees    | Even though you sign a transaction with fee terms, you pay nothing if your order is placed in the book |
| **Market orders (takers)** | Fees apply | Only orders that match immediately are charged                                                         |

If you provide liquidity to the book, you can trade **completely fee-free**.

## The Fee Curve

The fee curve adjusts dynamically based on where the market price is when you trade.

### Buy Fee Curve

Buy fees start at 3.00% for low-probability markets and decrease as probability increases:

| Price           | Buy Fee |
| --------------- | ------- |
| \$0.01 – \$0.50 | 3.00%   |
| \$0.55          | 2.52%   |
| \$0.60          | 2.13%   |
| \$0.65          | 1.80%   |
| \$0.70          | 1.51%   |
| \$0.75          | 1.26%   |
| \$0.80          | 1.05%   |
| \$0.85          | 0.85%   |
| \$0.90          | 0.68%   |
| \$0.95          | 0.53%   |
| \$0.99          | 0.42%   |
| \$0.999         | 0.40%   |

### Sell Fee Curve

Sell fees peak at the midpoint (\$0.50) and decrease toward the extremes:

| Price   | Sell Fee         |
| ------- | ---------------- |
| \$0.01  | 0.42%            |
| \$0.05  | 0.60%            |
| \$0.10  | 0.78%            |
| \$0.20  | 1.11%            |
| \$0.30  | 1.32%            |
| \$0.40  | 1.44%            |
| \$0.50  | **1.50%** (peak) |
| \$0.60  | 1.44%            |
| \$0.70  | 1.32%            |
| \$0.80  | 1.11%            |
| \$0.90  | 0.78%            |
| \$0.95  | 0.60%            |
| \$0.99  | 0.45%            |
| \$0.999 | 0.42%            |

<Info>
  By discouraging exits at the midpoint, the fee curve protects market integrity when uncertainty is highest.
</Info>

## Example: How Fees Play Out

Imagine you're buying **YES** shares in a market where the current probability is **40%** (\$0.40):

<Steps>
  <Step title="You buy early at 40%">
    Your buy fee = **3.00%**. You pay the full fee, but you're getting in early with better payout odds.
  </Step>

  <Step title="Market moves to 70%">
    If you sell when the market hits 70%, you pay a **1.32% sell fee** because you're away from the 50/50 uncertainty zone.
  </Step>

  <Step title="Someone else buys at 70%">
    They pay a **1.51% buy fee** — lower than yours, but they get worse odds since the price is already high.
  </Step>
</Steps>

It's all about conviction. Act early and stay smart — the system gives you the edge.

## Why This Fee Model Works

The fee structure is inspired by proven models (including Polymarket and Kalshi) and is designed to:

* **Reward early traders** for taking risk
* **Discourage flip-flopping** and short-term manipulation
* **Incentivize long-term** loyal participation
* **Keep markets fair**, liquid, and meaningful