Polymarket’s New Fee Structure: Why Many Trading Bots May No Longer Be Profitable

Short summary

Polymarket introduced fees on 15-minute crypto prediction markets reaching up to 1.56% at midpoint pricing—levels far exceeding the 1% profit margins many trading bots target. Maker rebates slashed from 100% to 20%, significantly eroding liquidity provider incentives. Bot developers must now redesign strategies around fee optimization and liquidity provision rather than spread capture.

• •1.56% maximum fees make unprofitable many high-frequency bots targeting narrow spreads
• •Maker rebate cuts (100% → 20%) slash expected returns for liquidity providers
• •Successful traders must prioritize execution quality and liquidity strategies over margin arbitrage

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