Revenue Model & Fee Structure
The White Label platform is designed to balance operator profit and user retention through a dynamic fee system that adapts to event probability.
Revenue is generated at two points: entry (Trading Fee) and exit (Payout Fee).
3.1 Dynamic Trading Fees (Entry)
Every time a user buys a position (“Yes” or “No”), the system charges a fee on the traded volume. The percentage varies by asset price to encourage liquidity in all scenarios.
Blue zone (standard revenue)
- Price range: $0.10 – $0.90 (uncertainty / contested outcome).
- Fee: 5% on volume.
- Effect: Most trading volume in balanced markets happens here, giving a solid margin to the operator.
Green zone (high-volume incentive)
- Price range: $0.91 – $0.99 (high probability).
- Fee: Tiered from 1.9% down to 0.9%.
- Rationale: When an outcome is almost certain, lower fees encourage large volumes and keep the market active until the end, avoiding capital flight.
3.2 Payout Fee (Success fee)
On top of the entry fee, the platform earns from the user’s success. This is “frictionless” revenue because the user pays on profit.
- Mechanic: Charged only on the net profit of the winning user.
- Fee: 0.36%.
- Loss case: If the user loses, no extra fee is charged beyond the amount already lost to the counterparty.
3.3 Example: $1,000 trade
Assume a user (“Trader A”) trades $1,000 in a market:
On entry (trading fee):
- Trader A invests $1,000.
- The platform keeps between 0.9% and 3.8% (depending on price).
- Immediate revenue: up to $38.
On profit (payout fee):
- Trader A wins and nets $1,000 profit (e.g. $2,000 returned).
- The platform charges 0.36% on the profit ($1,000).
- Additional revenue: $3.60.
The system monetizes the flow at multiple stages, automatically and transparently.
3.4 Why this model works better
Many platforms use a flat fee (e.g. 5%) that kills liquidity at high odds. This model:
- Encourages volume: Lower fees at high prices attract large traders and arbitrage.
- Full transparency: Users know the cost before they trade.
- Recurring revenue: Fees on both entry and profit provide steady income regardless of which side wins.
Documentation based on Triad Markets White Label Docs.