# Polymarket International Fees Methodology

## 1. Overview

The total value paid by users to trade on Polymarket International is measured by the Fees metric. These fees are generated through trading activities on both the automated market maker (AMM) and order book models. The overall economic activity and fee generation capability of the Polymarket International platform are reflected by this metric. Collected fees are denominated in stable assets, specifically USD Coin (USDC) and Polymarket USD, and are converted to USD for standardized reporting.

## 2. Data sources

- **Blockchain events**: `FPMMBuy` and `FPMMSell` events from `FixedProductMarketMaker` contracts, `OrderFilled` events from `Exchange` and `NegRiskCtfExchange` contracts, and ERC-20 asset transfers, covering Polygon
- **External data**: End-of-day price feeds and asset metadata

## 3. Step-by-step calculation

### Component A: Polymarket International AMM fee extraction

- **Purpose**: Fees generated from the V1 automated market maker (AMM) model are captured.
- **Logic**: `FPMMBuy` and `FPMMSell` events from `FixedProductMarketMaker` contracts on Polygon are parsed. The `feeAmount` field is extracted from each event to identify the fee paid in USD Coin (USDC). Only events occurring before the deprecation date are included.
- **Key fields**: `feeAmount` (fee quantity), `token_address` (USDC address)

### Component B: Polymarket International V1 order book fee extraction

- **Purpose**: Taker fees generated from the V1 order book model are captured.
- **Logic**: ERC-20 asset transfers of USD Coin (USDC) on Polygon are identified. Transfers are filtered to include only those where the sender address matches designated V1 fee source contracts and the recipient address matches designated V1 fee recipient addresses. The transfer `value` is extracted as the fee amount.
- **Key fields**: `value` (transfer amount), `from_address` (fee source), `to_address` (fee recipient)

### Component C: Polymarket International V2 order book fee extraction

- **Purpose**: Fees generated from the V2 order book model are captured.
- **Logic**: ERC-20 asset transfers of Polymarket USD on Polygon to designated V2 fee recipient addresses are identified. These transfers are filtered to include only those occurring within transactions containing `OrderFilled` events from `Exchange` or `NegRiskCtfExchange` contracts. Transfers originating from the Polymarket Combos exchange address are excluded to isolate Polymarket International fees. The transfer `value` is extracted as the fee amount.
- **Key fields**: `value` (transfer amount), `to_address` (fee recipient), `from_address` (used to exclude Polymarket Combos)

### Component D: Decimal normalization and USD conversion

- **Purpose**: Fee amounts are normalized and converted to USD.
- **Logic**: Extracted fee amounts for USD Coin (USDC) and Polymarket USD are aggregated daily. Raw amounts are normalized by the decimal precision of each respective asset using asset metadata. The normalized amounts are then multiplied by the end-of-day price of the respective asset to calculate the fee value in USD. Daily values are aggregated using UTC day boundaries.
- **Key fields**: `timestamp` (timing), `fees` (aggregated fee quantities), `price_usd` (asset price)

*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 International

Fees

Fees

Chain breakdown