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Fee Structure Overview

SportToken uses a transparent, risk-based fee model designed to keep the vault profitable while offering competitive pricing to bettors.

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Fee Components

Every bet has two potential fee components:

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Key Principles

  1. Risk-Proportional Pricing - Fees scale with how much risk your bet adds to the vault
  2. Rebates for Derisking - Bets that reduce vault exposure can earn rebates instead of paying fees
  3. Hard Caps - Maximum 3% exposure per side prevents catastrophic losses
  4. Transparency - All fees are shown before you place your bet

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Quick Examples

Low-risk bet (balancing the market):
  • Market is heavy on Team A
  • You bet on Team B (the underbet side)
  • Fee: 0.3% system fee + potential rebate
Higher-risk bet (adding to imbalance):
  • Market is heavy on Team A
  • You also bet on Team A
  • Fee: 0.3% system fee + 1-3% market fee (depends on exposure level)

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Rebates Explained

Rebates are the opposite of fees - when your bet helps the vault, you get paid.

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How to Earn Rebates

  1. Find imbalanced markets - Look for games where one side has heavy action
  2. Bet the underbet side - Your bet reduces vault risk
  3. Earn a rebate - Proportional to how much risk you removed

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Rebate Math

If the rebate exceeds 0.3%, you profit just by placing the bet (before the game even starts).

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Example: Profitable Bet Placement

  • Vault has 2% exposure on Team A
  • You bet $1,000 on Team B
  • Rebate rate: ~1.5%
  • Rebate: $15.00
  • System fee: $3.00
  • Net: You earn $12.00 + your normal bet payout if you win

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Where Rebates Apply

Rebates make SportToken unique - you can actually get paid to take positions that help balance the market.