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Overview

User-generated markets are prediction markets created by users rather than by the Limitless team. They carry a green Community badge across the app. Anyone can create one, and the creator earns a share of the trading fees their market generates — an incentive to launch markets people actually want to trade.
A user-generated market is identified by its Community badge. Markets created by the Limitless team do not have a creator fee.

The creator fee

When a user-generated market is created, a creator fee is attached to it. This fee is a share of the trading (taker) fees the market generates, and it is paid to the market’s creator.
PropertyDetail
What it applies toTaker fees generated by trades in the market
RateSet when the market is created — may vary between markets and change over time
Who receives itThe market creator’s wallet
TokenUSDC
WhenPaid daily, on the same schedule as maker rebates
The creator fee is stamped onto each market when it is created and frozen for that market’s lifetime. The exact rate can differ between markets and may be adjusted for new markets over time, so check a market’s Community badge for its current rate. Changing the platform-wide rate never changes the fee on a market that already exists.

How the creator fee interacts with maker rebates

This is the important part for market makers. On a user-generated market, the creator fee is taken first, off the top of the market’s trading fees. The maker rebate pool is then funded from what remains. In other words, on user-generated markets a maker rebate is not computed on the full trading-fee amount — it’s computed on the fees left after the creator’s cut.

Order of operations

1

Collect trading fees

The market collects taker fees from trades during the day (UTC).
2

Creator takes their cut first

The creator is paid their fee out of the market’s total trading fees.
3

Maker rebate pool is funded from the remainder

The maker rebate pool for that market is funded from the remaining fees, at the market’s rebate rate.
4

Payouts are distributed daily in USDC

Both the creator fee and the maker rebates are paid out daily in USDC.

Conceptual formula

Creator payout    = Trading fees × Creator fee rate
Maker rebate pool = (Trading fees − Creator payout) × Rebate rate
The maker rebate is measured against the fees that remain after the creator’s cut, not the full trading-fee amount. The larger a market’s creator fee, the smaller the share left to fund its maker rebate pool.

Markets created by Limitless

Markets created by the Limitless team have no creator fee. On those markets, the full eligible taker-fee amount funds the maker rebate pool (subject to the market’s rebate rate), exactly as described in Maker rebates.

Summary

  • User-generated markets are created by users and carry a Community badge.
  • The creator earns a share of the market’s trading fees.
  • The creator fee is taken first; maker rebates are funded from the remainder.
  • The exact rate is set per market, can vary, and is frozen per market at creation — check the badge for a market’s current rate.
  • Creator fees and maker rebates are both paid daily in USDC.