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.

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Polymarket

# Polymarket Earnings Methodology

## 1. Overview

Earnings is defined as the net value retained by Polymarket after all expenses are subtracted from revenue. The onchain profitability of the protocol's distinct products, including Polymarket International and Polymarket Combos, is represented by this metric. Expenses subtracted from revenue are comprised of cost of revenue (such as maker rebates) and token incentives (such as liquidity and holding rewards). Earnings are not reported for Polymarket US due to the absence of public revenue data for this product.

## 2. Data sources

- **Revenue**: Derived from the Revenue metric
- **Expenses**: Derived from the Expenses metric

## 3. Step-by-step calculation

### Component A: Revenue retrieval

- **Purpose**: The retrieval of daily revenue generated by Polymarket products
- **Logic**: Daily revenue values are extracted from the upstream Revenue metric for Polymarket International and Polymarket Combos. Revenue is calculated as total fees minus supply-side fees (such as taker rebates). Polymarket US is excluded from this step as no revenue data is reported.

### Component B: Expenses retrieval

- **Purpose**: The retrieval of daily expenses incurred by Polymarket products
- **Logic**: Daily expense values are extracted from the upstream Expenses metric. These expenses are calculated as the sum of cost of revenue (maker rebates paid to liquidity providers) and token incentives (liquidity and holding rewards distributed to users).

### Component C: Earnings calculation

- **Purpose**: The calculation of net earnings
- **Logic**: Net earnings are calculated by subtracting daily expenses from daily revenue for each product. The calculation is restricted to days where both revenue and expense data are fully available to prevent partial-day reporting mismatches. If a product has no reported revenue (such as Polymarket US), earnings are omitted rather than set to zero.

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

Net profit (also profits, net income, profitability) — revenue remaining after subtracting expenses.

Polymarket

Earnings

Earnings

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