# Polymarket Combos Fees Methodology

## 1. Overview

Fees for Polymarket Combos are measured as the total value paid by users to execute combination trades on the platform. These fees are generated through order book activity and are collected to support the protocol's trading infrastructure. The economic value generated specifically by the combination betting markets of Polymarket Combos is represented by this metric. All collected fees are denominated in the platform's collateral asset and converted to USD using end-of-day price feeds.

## 2. Data sources

- **Blockchain events**: ERC-20 `Transfer` events, and `OrderFilled` events from `Exchange` and `NegRiskCtfExchange` contracts, covering Polygon
- **External data**: End-of-day price feeds for the collateral asset

## 3. Step-by-step calculation

### Component A: Trade transaction identification

- **Purpose**: Identify transactions associated with V2 exchange trades
- **Logic**: Transactions containing V2 exchange trades are identified by parsing `OrderFilled` events from `Exchange` and `NegRiskCtfExchange` contracts. A distinct list of transaction hashes is generated from these events to assist in filtering fee transfers.

### Component B: Polymarket Combos fee transfer extraction

- **Purpose**: Extract fee payments specifically associated with Polymarket Combos
- **Logic**: ERC-20 `Transfer` events of the collateral asset (`pUSD`) to the designated V2 fee recipient address are filtered. To isolate Polymarket Combos fees, transfers are selected where the sender address matches the Polymarket Combos exchange address. These transfers are captured and classified under the Polymarket Combos product.
- **Key fields**: `block_timestamp`, `transaction_hash`, `from_address`, `to_address`, `value` (amount), `token_address`

### Component C: USD conversion and aggregation

- **Purpose**: Normalize fee amounts and convert them to USD
- **Logic**: The extracted fee amounts are normalized by the decimal precision of the collateral asset. The normalized values are then multiplied by the end-of-day price of the collateral asset to obtain the USD value. The daily fee totals are aggregated by summing the USD values within UTC day boundaries.

*This methodology was automatically generated by Token Terminal's methodology analyzer.*

Total value users pay to use a protocol (gross fees, user-paid fees).

Fees

Prediction markets

Liquidity providers deposit funds into Polymarket and receive trading fees from traders (supply-side fees). Polymarket has also launched a new peer-to-peer order book with no liquidity providers involved.

Polymarket is a non-custodial prediction market protocol built on Polygon. Polymarket was founded by Shayne Coplan and launched in 2020.

Polymarket team & investors own and govern the protocol. They do not currently take a cut of the total trading fees paid by traders (revenue). Polymarket's investors include Polychain, 1Confirmation, ParaFi Capital, etc.

Polymarket Combos

Fees

Fees

Chain breakdown