On Platform Trading Fees CFTC Launch

• All straight plays on site (not via b2b) will be charged 2% commission on net winnings per market (same as current sweeps fees). 

• All market makers and VIPs will all initially be charged these same fees.

• Market makers will be standard market participants until we sign them to new SLAs and have the ability to enforce them. Therefore they will be on the same fee structure as the rest of the exchange. 

• To award value for large volume makers between VIP and Market Makings - there will be fee rebates processed at the end of each month. These rebates will depend on monthly make volume.

• All of these levels are set for a full month - if we launch mid month then tiers will be prorated for number of days in month.

• The table for rebates is set out below. The end of month rebate will be calculated at the end of the month based on what % of user volume fell into which marginal rebate tier. Examples below.

• Example rebate calculations:

  • A user has 75k in volume at the end of the month. That user has paid $1,000 in trading commission. Their effective rebate rate would be (50k * 0 + 25k * .2)/75k = 6.666%. The user would receive a rebate of $66.66 dollars.

  • A user has 7.5m in make volume and has paid $100,000 in trading commission. Their effective rate would be (50k * 0 + 700k * .2 + 2.25m * .4 + 4.5m * .6)/7.5m = 49.86%. The user would receive a rebate of $49,860 dollars. 

• This process will be carried out manually at launch while a more flexible fee system is scoped and built. 

• Numbers will be subject to change after the first month.

• Credits will be redeemed in nova as a cash promotion for tagging purposes unless there is desire to create a new transaction subtype. 

• Parlays are not currently subject to fees. Product/Eng meeting needed to find best short/long term plan to charge fees on RFQ on site.

Off Platform Trading Fees CFTC Launch (B2B)

• All fees will be collected at the trade level and at the time of trade placement - not the market level post settlement as is true with on platform commission.

• Partners will ultimately choose their fee structure - although the encouraged fee structure from ProphetX will be a rate based fee on the placed stake given by:

  • Fee rate = 0.025 * (1-P)/(0.16  + P) + 0.00015

• ProphetX will have a revenue share with the partner on these fees based on the individual agreement with that partner.

• Fees will apply to RFQ.