Fees

How funding is priced for each leveraged position.

Multiply uses a simple, predictable fee model that aligns incentives across front-ends, credit partners, and Dimes. A leveraged position incurs two distinct categories of fees:

1. Protocol fees: paid to Dimes, covering credit, hedging, and infrastructure.

2. External fees: paid to the underlying prediction market (Polymarket) and front-end, independent of Multiply.

Both are deducted from the position's collateral and netted against PnL at close. The sections below break down each in turn.

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1. Protocol Fees

Protocol fees compensate Dimes and credit partners for providing leverage, running hedges, and operating settlement infrastructure. They consist of an entry fee, a continuous time-based fee, and (only on forced closes) a liquidation fee.

Entry Fee

A fixed percentage applied to Collateral × Leverage at position creation:

EntryFee = Collateral × Leverage × f_entry

where f_entry is between 2.0% and 2.5%, scaled with leverage.

Time-Based Fee

A funding-style fee applied continuously on the protocol-provided capital (the borrowed portion of notional, i.e. Notional − Collateral):

TimeFee = BorrowedCapital × f_time × TimeElapsed

BorrowedCapital = Collateral × (Leverage − 1)

Where f_time is equivalent to 0.05% daily rate, charged continuously.

Liquidation Fee

A 10% fee assessed on the protocol-provided capital (Notional − Collateral) when a position is force-closed. Retained entirely by Dimes to offset hedge slippage, execution impact, and emergency unwind costs.

Total Protocol Fee

TotalProtocolFee = EntryFee + TimeFee (+ LiquidationFee, if applicable)

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2. External Fees (Polymarket and Front-ends)

In addition to protocol fees, every position routed through Polymarket pays Polymarket's own taker fee on the underlying CLOB trades. These fees are charged by Polymarket directly, are not collected or shared by Dimes, and apply to all market participants, leveraged or not. In addition, front-ends statutory execution fees also apply.

Multiply surfaces the venue fee separately on every quote and position via the polymarket_trading_fee_bps field so that end users see the true cost footprint of opening and closing a leveraged trade.

How Polymarket Prices Fees

Polymarket charges a per-share fee that varies with the share price. The formula is:

fee_per_share = price × feeRate × (price × (1 − price))^exponent

Three properties of this curve matter:

• Fees peak at $0.50 and decrease toward both extremes ($0.01 and $0.99). The price × (1 − price) term is the variance of a Bernoulli outcome: Polymarket charges takers in proportion to the adverse-selection risk that market makers bear at each price level.

• Fees are charged on both entry and exit. Every position pays the fee twice: once when shares are bought and again when they are sold. The peak effective rates below describe one leg only: round-trip cost can approach double the headline rate, and traders should size leveraged positions with the full round-trip in mind.

• Rates differ by market category. Under Polymarket's fee schedule effective March 30, 2026, peak effective rates (the rate paid at $0.50, per leg) range from 0% to 1.80%:

Category	Peak Effective Rate (per leg)	Approx. Round-Trip at 50¢
Geopolitics	0%	0%
Sports	0.75%	~1.50%
Finance, Politics, Tech	1.00%	~2.00%
Culture, Economics, Weather, Other	1.25%	~2.50%
Mentions	1.56%	~3.12%
Crypto	1.80%	~3.60%

Refer to Polymarket's fee documentation for the canonical, up-to-date schedule and the exact formula coefficients (feeRate, exponent) per category.

How Front-ends Prices Fees

Front-end pricing approaches vary: some apply a gradual, price-dependent fee schedule similar to Polymarket's, others charge a flat origination fee, and some charge nothing at all. Front-end fees typically apply to Multiply positions in addition to venue and protocol fees, and are surfaced on every quote so users see the full cost stack before confirming.

How External Fees Scale With Leverage

Exeternal fees are charged on the full leveraged notional, not on user collateral.

When a user opens a 10× position with $1,000 of collateral, $10,000 of shares are purchased on Polymarket, and Polymarket assesses fees on that $10,000, not on the $1,000 the user contributed. Fees are paid both at entry (buying shares) and at exit (selling shares), so the round-trip cost is paid twice.

The practical consequence is that the cost footprint of opening and closing a position is significantly larger, in absolute terms, than the unleveraged equivalent, even when no odds movement occurs. A position opened and closed at the same price still pays the full round-trip venue fee on the leveraged notional.

Some practical implications:

• Holding to resolution avoids the exit fee. Polymarket fees are taker fees on fills; resolution is not a fill. Users with high-conviction views who hold through resolution pay only the entry leg.

• Trades that cross the 50¢ midpoint are most expensive. Fees are highest at $0.50 and fall symmetrically toward the extremes. A move from $0.05 to $0.15 incurs a lower round-trip fee than a move from $0.30 to $0.70 of the same absolute size.

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3. Fee Flows

Protocol fees flow entirely to Dimes, and are used to:

• fund hedging operations and routing

• pay interest to credit partners

• support risk modeling, monitoring, and settlement infrastructure

• maintain buffers and safety margins

Front-end partners earn separately, by charging their own origination fee on the leveraged notional generated through their integration. The partner fee is configured in basis points on the partner record, applied at quote time on top of the protocol's origination fee, surfaced transparently to end users via partner_origination_fee_bps, and settled directly to the partner's designated wallet. See Partner-Configurable Options below for the full set of partner-level controls.

Venue fees (Polymarket) are paid directly to Polymarket by the position and never flow through Dimes' or the partner's books.

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4. Partner-Configurable Options

Front-end partners can opt into several configuration options that customize how their integration earns and reports revenue. These are not exposed as self-serve settings. Dimes provisions them on the partner record during onboarding, so the API surface stays unchanged for end users.

• Custom partner origination fee: partners may add an additional spread (in basis points) on top of the protocol's tier-based origination fee. The combined rate is enforced on-chain and surfaced through the standard origination_fee_bps field on every quote, offer, and position so end users always see the true blended rate before confirming. Offer and position responses (open + closed) expose the breakdown via protocol_origination_fee_bps / partner_origination_fee_bps — on positions, this split is frozen at offer creation, so positions opened before the field was persisted report partner_origination_fee_bps = 0 and protocol_origination_fee_bps = origination_fee_bps. The venue trading fee paid to the underlying prediction market on every executed leg (open, close, force-unwind, liquidate, settle) is surfaced separately on positions as accrued_venue_fee_* (open) and total_venue_fee_* (closed), and is now folded into net_unrealized_pnl_* and net_realized_pnl_*.

• Dedicated fee receiver wallet: partners designate a wallet that receives their share of fees. Settlement flows directly to that address, keeping accounting clean and removing any need for off-platform reconciliation.

• Polymarket builder code: partners using the Polymarket route can register their own builder profile with Polymarket (polymarket.com/settings?tab=builder) and share the returned bytes32 builder code. Dimes attaches it to every CLOB order routed through that partner so Polymarket builder rewards accrue directly to the partner's Polymarket account, in addition to the partner's own origination fee on leveraged notional. Partners that don't provide a code fall back to the Dimes operator builder code.