The model
Every round is a self-contained pot. Stakes from the losing side are distributed to the winning side, pro-rata to each winning player’s stake. A small, published rake is taken from the pot at settlement. There is nothing else.What you actually receive
If you are on the winning side of a round, you receive:- Your original stake, returned in full.
- A pro-rata share of the losing pot, minus the rake.
The rake
Prediction Arena takes a flat, published rake from each round’s losing pot. The exact percentage is listed on the market page for every market and is enforced by the smart contract — it cannot be raised silently, it cannot be raised for some players and not others, and it cannot be raised retroactively. There are no other fees:- No deposit fee. You move funds directly from your wallet into a round.
- No withdrawal fee. Winnings go directly back to your wallet at settlement.
- No spread. There is no order book and no market maker, so there is nothing to “spread.”
- No priority lane. No player can pay extra for better odds, earlier information, or preferential settlement.
- No VIP rebates. A whale and a first-time player pay the exact same rake on the exact same round.
What the rake funds
The rake covers:- Oracle fees paid to the price provider.
- On-chain gas for opening rounds, settling rounds, and paying out winners.
- Security: ongoing audits, the bug bounty program, and incident response.
- Engineering and operations.
