Trading Fees

Novig charges a single trading fee, on one side of a trade. On straight contracts it applies only while the underlying event is live; RFQ trades are priced on their own schedule.

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The Formula

$$\text{Fee} = c \cdot P\,(1 - P) \cdot N$$ Each fill is priced independently, so a partially filled order accrues a fee per fill rather than one fee on the parent order. Fees are charged exactly, including sub-cent amounts — there is no rounding up to the cent and no minimum fee. The only quantization is the ledger’s own precision, 5 decimal places ($0.00001), applied with standard half-up rounding. A fill small enough to owe a fraction of a cent is charged that fraction. The formula is symmetric around $P = 0.5$: $P$ and $1 - P$ produce the same fee, so a fill at $0.30 costs exactly what a fill at $0.70 costs. The fee peaks at even money, $$\max_{P} \; c \cdot P\,(1 - P) = \frac{c}{4} = 0.0075 \text{ per contract}$$ — 0.75% of payout, or 1.5% of notional — and falls toward zero at both tails.

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Worked Examples

At the current 0.03 coefficient: The last three rows are the sub-cent rule: $3.7125 is charged as $3.7125, not rounded to $3.72, and a one-qty fill owes $0.000075, charged as $0.00008 after the ledger’s 5-decimal quantization. A cent floor on that fill would be a ~125× overcharge, which is why there isn’t one.

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Who Pays

There is no maker fee, and no opt-in or contract is required to collect Maker Credits. The Maker Credit is currently 50% of the taker fee actually collected on the trade, which works out to: $$\text{Maker credit} = \tfrac{1}{2}\,\text{Fee} = 0.015 \cdot P\,(1 - P) \cdot N$$ See the Maker Credit Program for the full terms, eligibility, and crediting schedule.

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RFQ Trades

RFQ executions are priced on their own coefficient and their own form of the same quadratic. A combination contract has no single contract price, so the taker fee is expressed in stake form. With $w$ the taker’s wager and $k$ the pricer’s collateral, the implied probability is $P = w / (w + k)$ and the pot is $w + k$, so $c \cdot P\,(1 - P) \cdot (w + k)$ reduces to $$\text{RFQ fee} = 0.10 \cdot \frac{w \, k}{w + k}$$ Two differences from the straight schedule worth calling out. The RFQ taker fee is not gated on event liveness — RFQs execute before the event begins, so the charge applies on execution rather than only during live play, and it is not a Live Trading fee for Maker Credit purposes. And the maker side, the EMM pricing the RFQ, pays no fee but likewise earns no credit.

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When Fees Apply

Because the charge follows the event’s status at the moment of the match, knowing whether an event is live is a fee question, not a cosmetic one. There are two ways to know:

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Reading Fees from the API

Every fill on GET /v3/portfolio/fills reports what it cost you. A charged fill carries fee, the total debited from your wallet for that fill; it is absent on a fill that was not charged, so a maker fill or a non-live fill has no fee field. The ledger rows behind it — the collateral debit and, on a charged fill, the fee debit — are on GET /v3/portfolio/transactions. Real-time fill events on the private stream do not carry a fee. Fetch the fill history.

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Scope and Notes

• Two schedules. The formula at the top of this page prices straight contracts. Combination contracts (multi-leg or “parlay” contracts, including everything traded via RFQ) are priced by the RFQ schedule and are not eligible for Maker Credits.
• Trading fees only. “Fees” here means Novig’s trading fees. Clearing, banking, and payment processing fees are not included.
• The coefficient can change. The coefficient above is the current live trading fee schedule, posted pursuant to Rule 3.6 of the Ludlow Rulebook. Read it from this page rather than hardcoding a rate you can’t update.
• No cent floor. Charges carry to 5 decimal places ($0.00001), so sub-cent fees are charged as sub-cent amounts.

Questions on fees or the Maker Credit Program: caleb.henry@novig.co.