Fees

Orica charges fees on trading activity and redemptions. These fees sustain the protocol and reward market creators.

Fee Overview

Fee Type	Recipient	Rate	When Charged
Authority Trading Fee	Protocol	1.25%	On buy/sell
Creator Trading Fee	Market Creator	0.45%	On buy/sell
Redemption Fee	Protocol	0.30%	On redeem

Trading Fees

Every buy and sell transaction incurs a combined 1.70% fee:

Buying
Selling

Fees are deducted from your input amount:

Input: 100 USDC
Protocol Fee (1.25%): 1.25 USDC
Creator Fee (0.45%): 0.45 USDC
Amount for shares: 98.30 USDC

You receive shares worth ~98.30 USDC at current prices.

Fees are deducted from your output amount:

Share value: 100 USDC
Protocol Fee (1.25%): 1.25 USDC
Creator Fee (0.45%): 0.45 USDC
USDC received: 98.30 USDC

Redemption Fee

When you redeem winning shares after resolution, a 0.30% fee applies:

Winning shares: 1000
Gross value: 1000 USDC
Redemption Fee (0.30%): 3.00 USDC
Net payout: 997.00 USDC

Losing shares have no value and cannot be redeemed.

Fee Destinations

Protocol Fee Vault

Protocol fees accumulate in a fee vault controlled by the protocol authority. These funds support:

Infrastructure costs
Development
Protocol improvements

Creator Fee Vault

Each market has a designated creator fee vault. Market creators earn passive income from trading activity on their markets.

Fetching Current Fees

Fee rates are stored in the GlobalState account and can be fetched via SDK:

const globalState = await sdk.orica.fetchGlobalState();

console.log("Trading Fee (Protocol):", globalState.authorityTradingFeeBps, "bps");
console.log("Trading Fee (Creator):", globalState.creatorTradingFeeBps, "bps");
console.log("Redemption Fee:", globalState.redemptionFeeBps, "bps");

Fee rates are expressed in basis points (bps). 100 bps = 1%.

Fee Considerations for Traders

Round-Trip Cost

Buying and selling incurs fees twice. A round trip costs ~3.40% plus any price movement.

Break-Even

You need prices to move ~3.70% in your favor to break even on a round trip (including redemption).

Long-Term Holding

Holding until resolution means you only pay fees once (buy) plus redemption fee if you win.

Large Trades

Fees scale linearly with trade size. A 1000 USDC trade pays 10x the fees of a 100 USDC trade.

Fee Changes

Fee rates can be updated by protocol governance. Changes take effect immediately for new transactions. Always fetch current rates before large trades:

// Verify current fees before trading
const globalState = await sdk.orica.fetchGlobalState();
const totalTradingFee = 
  globalState.authorityTradingFeeBps + 
  globalState.creatorTradingFeeBps;

console.log(`Total trading fee: ${totalTradingFee / 100}%`);

Getting Started

Core Concepts

Resolution

Technical Architecture

Fee Overview

Trading Fees

Redemption Fee

Fee Destinations

Protocol Fee Vault

Creator Fee Vault

Fetching Current Fees

Fee Considerations for Traders

Round-Trip Cost

Break-Even

Long-Term Holding

Large Trades

Fee Changes

​Fee Overview

​Trading Fees

​Redemption Fee

​Fee Destinations

​Protocol Fee Vault

​Creator Fee Vault

​Fetching Current Fees

​Fee Considerations for Traders

Round-Trip Cost

Break-Even

Long-Term Holding

Large Trades

​Fee Changes

Fee Overview

Trading Fees

Redemption Fee

Fee Destinations

Protocol Fee Vault

Creator Fee Vault

Fetching Current Fees

Fee Considerations for Traders

Fee Changes