> For the complete documentation index, see [llms.txt](https://funmarket.gitbook.io/funmarket/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://funmarket.gitbook.io/funmarket/fee-mechanics-and-revenue-distribution.md).

# Fee Mechanics & Revenue Distribution

### Overview

<br>

FunMarket applies deterministic, smart contract–enforced fees to market activity.

<br>

Fees are designed to:

* Incentivize high-quality market creation
* Support protocol sustainability
* Maintain permissionless access

<br>

All fees are enforced on-chain and displayed in the interface prior to execution.

***

### Trading Fee Structure

<br>

For each trade executed on FunMarket, protocol-level fees are applied as follows:

* 2% creator fee allocated to the market creator
* 1% protocol fee allocated to FunMarket Labs Ltd

<br>

Fees are calculated on the traded amount and applied uniformly across all markets and participants.

<br>

FunMarket does not act as a counterparty to trades and does not benefit from market outcomes.

***

### Creator Fees

<br>

Market creators earn a portion of trading fees generated within their markets.

<br>

Creator fees:

* Are earned from trading activity, not from winning or losing outcomes
* Are distributed automatically via smart contracts
* Accrue proportionally to the volume traded within the market

<br>

Creators do not:

* Receive user funds directly
* Control settlement or resolution
* Influence market pricing

<br>

Creator fees exist to reward thoughtful market design and active participation.

***

### Protocol Fees

<br>

Protocol fees are allocated to FunMarket Labs Ltd.

<br>

These fees support:

* Infrastructure and hosting
* Protocol development and upgrades
* Security reviews and audits
* Tooling, analytics, and ecosystem growth

<br>

Protocol fees do not grant users any ownership, equity, or governance rights.

***

### Fee Visibility & Execution

<br>

All applicable fees are:

* Displayed in the interface prior to transaction confirmation
* Calculated deterministically by smart contracts
* Applied at execution time

<br>

Users are responsible for reviewing fee details before interacting with markets.

***

### Fee Adjustments

<br>

Fee parameters may be updated in future protocol versions.

<br>

Any changes:

* Apply only to newly deployed contracts or markets
* Are reflected transparently in the interface and documentation

<br>

Historical markets retain their original fee parameters.

***

### Informational Disclaimer

<br>

Fee examples and descriptions provided in this documentation are for informational purposes only.

<br>

Actual fees are enforced by smart contracts and displayed in the FunMarket interface prior to execution.


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