> ## Documentation Index
> Fetch the complete documentation index at: https://docs.xo.market/llms.txt
> Use this file to discover all available pages before exploring further.

# Fees

> Where XO trading fees apply, who pays them and how the price-based fee curve works.

XO charges trading fees on eligible order-book markets. The fee is charged in XO USDC when an order fills, and the trade ticket shows an estimate before you confirm.

<Info>
  Only the taker pays a trading fee. The maker pays no trading fee.
</Info>

## Where trading fees apply

The current fee configuration covers these market groups:

| Market group              | Taker base rate | Maker fee |
| ------------------------- | --------------: | --------: |
| Sports order-book markets |              4% |        0% |
| Pulse markets             |              4% |        0% |
| Conviction markets        |              4% |        0% |

The **4% base rate is an input to the fee curve**, not a flat 4% charge on your trade value. The final amount depends on the number of shares filled and their fill price.

Always review the fee shown on the order ticket. XO can apply a more specific fee policy to a market, and the policy active when a fill occurs determines the final charge.

## Taker and maker

| Role      | What happens                                                                  |             Trading fee |
| --------- | ----------------------------------------------------------------------------- | ----------------------: |
| **Taker** | Your order immediately trades against liquidity already on the book.          | Pays the applicable fee |
| **Maker** | Your limit order rests on the book and another order trades against it later. |                      0% |

A market order is a taker order. A limit order is also a taker for any portion that crosses the book immediately. If the remaining portion rests and fills later, that portion is maker liquidity and pays no trading fee.

## How the fee is calculated

For each taker fill:

```text theme={null}
fee = filled shares × 0.04 × price × (1 − price)
```

Where:

| Symbol            | Meaning                                                     |
| ----------------- | ----------------------------------------------------------- |
| **filled shares** | The number of shares executed in that fill                  |
| **0.04**          | The current 4% base rate                                    |
| **price**         | The fill price written as a number from 0 to 1; 50¢ is 0.50 |

The price multiplier `price × (1 − price)` is highest at 50¢ and falls toward 0¢ and \$1. This makes the fee largest where the outcome is most uncertain and smaller as the market approaches either extreme.

### Fee table for 100 shares

The examples below use the current 4% base rate. Amounts are rounded to the nearest cent for readability.

| Share price | Trade value | Taker fee |
| ----------: | ----------: | --------: |
|          1¢ |      \$1.00 |    \$0.04 |
|          5¢ |      \$5.00 |    \$0.19 |
|         10¢ |     \$10.00 |    \$0.36 |
|         15¢ |     \$15.00 |    \$0.51 |
|         20¢ |     \$20.00 |    \$0.64 |
|         25¢ |     \$25.00 |    \$0.75 |
|         30¢ |     \$30.00 |    \$0.84 |
|         35¢ |     \$35.00 |    \$0.91 |
|         40¢ |     \$40.00 |    \$0.96 |
|         45¢ |     \$45.00 |    \$0.99 |
|         50¢ |     \$50.00 |    \$1.00 |
|         55¢ |     \$55.00 |    \$0.99 |
|         60¢ |     \$60.00 |    \$0.96 |
|         65¢ |     \$65.00 |    \$0.91 |
|         70¢ |     \$70.00 |    \$0.84 |
|         75¢ |     \$75.00 |    \$0.75 |
|         80¢ |     \$80.00 |    \$0.64 |
|         85¢ |     \$85.00 |    \$0.51 |
|         90¢ |     \$90.00 |    \$0.36 |
|         95¢ |     \$95.00 |    \$0.19 |
|         99¢ |     \$99.00 |    \$0.04 |

Prices equidistant from 50¢ have the same fee for the same number of shares. For example, 100 shares at 30¢ and 100 shares at 70¢ each have an \$0.84 fee.

## Worked example

A taker buys **200 shares at 50¢**:

```text theme={null}
trade value = 200 × $0.50 = $100.00
fee = 200 × 0.04 × 0.50 × 0.50 = $2.00
total buy cost = $102.00
```

If the same 200-share order fills in two parts, XO calculates the fee for each fill. When both fills occur at the same price, their fees add to the same \$2.00 total. If the fill prices differ, each portion uses its own price.

## Buys, sells and partial fills

* **Buy:** the fee is added on top of the filled order value.
* **Sell:** the fee is deducted from the proceeds you receive.
* **Partial fill:** only the executed shares are charged. An unfilled or cancelled remainder pays no fee.
* **Several fills:** each fill is calculated separately, then the amounts are added together.

The estimate shown before confirmation uses the order's expected execution. Your final receipt uses the shares and prices that actually filled, so it can differ when an order walks through several price levels.

## Conviction market creation cost

Creating a Conviction market has two separate requirements:

| Item            |           Amount | What it does                                                         |
| --------------- | ---------------: | -------------------------------------------------------------------- |
| Creation charge |           \$1.00 | Pays the one-time market creation cost                               |
| Seed order      | At least \$10.00 | Opens the creator's initial position and supplies starting liquidity |

The seed order is not a fee. It becomes a market position. Trading fees apply separately when orders fill.

## What does not incur a trading fee

* A maker fill from an order that rested on the book
* An order cancelled before any shares fill
* The unfilled remainder of a partially filled order
* A rejected order
* A fill that fails settlement and is reversed

Maker rebates and liquidity rewards are separate reward programs. They do not change the trading fee shown on your order ticket.

For API and settlement details, see [Fees for integrators](/guides/fees).