Why 70% Maker Rebates Are Changing Prediction Market Liquidity

Prediction markets live and die by liquidity. A market with wide spreads and thin depth is expensive to trade, slow to reflect new information, and ultimately unattractive to participants. This has been the defining challenge for every prediction market platform since the early days of Intrade and PredictIt, and it remains the biggest bottleneck for newer crypto-native venues.

The root cause is straightforward: providing liquidity in a prediction market is risky. Makers post orders at prices that reflect their view of probability. When they are wrong, they lose. When they are right, they win the spread — but on most platforms that spread is their only compensation. There is no additional incentive to take on the risk of being the liquidity backbone of the market.

The Maker-Taker Fee Model

Maker-taker pricing is the dominant fee structure in traditional equity and futures exchanges. The principle is simple: charge more to the party that consumes liquidity (taker) and reward the party that creates it (maker). The exchange collects the difference. This model has proven over decades to produce deeper order books and tighter spreads than flat-fee alternatives.

PredMarkets applies this model to prediction markets with an aggressive 70/30 split. Takers pay a dynamic fee ranging from 0.50% to 0.99% depending on market certainty. Of that fee, 70% goes directly to the maker whose order was filled. The remaining 30% accrues to the protocol. For a detailed breakdown of the fee formula, see the fee structure documentation.

Why 70% Is Transformative

Compare that 70% rebate to the alternatives. Polymarket offers a small reward-points program that translates to roughly 0.20% per fill. Kalshi offers no maker rebate at all. On PredMarkets, a maker whose order is filled at a 0.80% taker fee earns 0.56% of notional as a rebate. That is not a loyalty program or a speculative token — it is USDC deposited into the maker's claimable balance on every single fill.

The compounding effect is significant. A maker providing consistent two-sided liquidity across multiple 5-minute epochs can accumulate meaningful rebate income independent of whether their directional positions win or lose. The rebate becomes a second revenue stream that offsets losses and amplifies gains.

Earnings Example

Suppose you provide two-sided liquidity on BTC 5-minute markets and your orders are filled for 500 USDC notional per epoch. The average taker fee at moderate certainty is roughly 0.75%. Your rebate per fill is 0.75% × 70% = 0.525%, or about 2.63 USDC per epoch. Over a 12-hour session with ~144 five-minute epochs, that is approximately 378 USDC in rebates alone — before accounting for any directional profit. Actual results depend on fill rates, market conditions, and the prices at which your orders execute.

How to Start Earning

Becoming a maker on PredMarkets requires no application, no minimum balance, and no KYC. Connect your wallet, deposit USDC, and place limit orders on any active market. Every limit order that rests on the book qualifies for the rebate when filled. Visit the maker rebates page for a step-by-step guide.