Every trade incurs a fee paid out directly to liquidity providers (LPs) because facilitating trades in a market requires liquidity. More liquidity in a market reduces slippage for users when they purchase shares. Without liquidity, there would be significant price slippage. Polymarket does not charge fees for trading.
The price of a share corresponds to the probability of an outcome occurring. If a “Yes” share on an event is trading at $0.60, then the market believes the probability of that event occurring is 60%. If you believe that there is a greater than 60% chance of that event occurring, then it may be a good time to buy. This is because the market is underestimating what you think will happen.
You can buy and sell shares at any time before the market resolves. If you have shares that have risen in value since you bought them, you can cash them out for a profit. If you wait until the market resolves, "Yes" shares will be worth $1 if the event occurs and "No" shares will be worth $0. The opposite is true if the event does not occur.
A market closes within 3 days of the resolution criteria have been met. This can be based on a date or a specific event occurring or not occurring. Market topics use an external source to verify the correct resolution. If the market outcome is ambiguous, the market will be resolved at the sole discretion of the Markets Integrity Committee (MIC). For more information on what happens after a market closes, see the “Market Resolution” section below.
When the market resolves, correct shares are worth $1.00 while incorrect shares are worth nothing. If you have shares on the correct outcome, visit the market page to redeem your winnings. Redeeming shares does not incur the liquidity fee.
You can own “Yes” shares and “No” shares in the same market. Holding 1 “Yes” share and 1 “No” share is equivalent to having $1.00 (minus trading fees). As a result, Polymarket allows you to merge these shares back into USDC.
What is external slippage?
What is internal slippage and how is it affected by slippage protection?