How to Farm Maker Rebates on Polymarket

How does it work?

On eligible Polymarket markets, a portion of taker fees is redistributed back to liquidity providers through the Maker Rebates program.

When you place resting limit orders and other traders fill them, you receive a portion of the daily rebate pool in USDC.

• Paid daily in USDC: Rebates are calculated and distributed every day.
• Performance-based: You earn based on the share of liquidity you provided that actually got taken.
• Eligibility: Place orders that add liquidity to the book and get filled (i.e., your liquidity is taken by another trader).
• Funded by taker fees: Rebates come from fees paid by takers when they execute against maker liquidity.

The rebate percentage differs by market type.

How are rebates calculated?

Rebates are distributed using the same formula as taker fees. This ensures makers are rewarded proportionally to the fee value their liquidity generates.

For each filled maker order:

fee_equivalent = C × feeRate × p × (1 - p)

C — number of shares traded p — price of the shares feeRate — taker fee rate for the market category

Since rebates are funded by taker fees, markets with higher fee rates generally create larger rebate pools for makers.

feeRate for different types of markets:

Note: Geopolitics markets currently have zero trading fees, which means there is no Maker Rebate program available for those markets.

In practice, this means markets with higher taker fees and frequent fills usually generate larger rebate pools.

The formula is weighted by p × (1 - p), meaning fills near 50¢ generate the highest taker fees — and therefore the highest Maker Rebates.

For example, compare two $1,000 fills in the Sports category (3% taker fee, 25% maker rebate):

• Fill at 50¢

2,000 shares × 0.03 × 0.50 × (1 - 0.50) = $15 taker fee

$15 × 25% = $3.75 Maker Rebate

• Fill at 95¢

1,052.63 shares × 0.03 × 0.95 × (1 - 0.95) ≈ $1.50 taker fee

$1.50 × 25% ≈ $0.375 Maker Rebate pool

Even with the same $1,000 notional size, the 50¢ trade generates roughly 10× higher rebate value. This is why markets trading near the midpoint often produce the best Maker Rebates opportunities.

In practice, Maker Rebates alone are usually not large enough to be a standalone strategy. However, they can significantly improve the profitability of certain trading setups, especially in highly liquid markets with tight spreads.

How do traders use Maker Rebates?

Maker Rebates are essentially an additional source of yield for traders who provide liquidity on Polymarket.

In most situations, rebates simply help offset trading costs. However, in highly active markets, they can become a meaningful source of additional profit, especially for short-term spread scalping strategies.

Highly liquid markets with constant order flow are usually the best environments for this approach, since both sides of your orders are more likely to get filled.

A common strategy is placing limit orders on both YES and NO simultaneously.

For example:

• buy YES at 49¢
• buy NO at 50¢

Since the combined cost is 99¢, you can later merge both positions back into 1 USDC and lock in roughly 1% profit on the spread alone. If your orders were filled as maker orders, you may also receive additional Maker Rebates on top of the spread profit. If the market also offers LP Rewards, you could additionally earn a share of the LP reward pool.

(If you’re unfamiliar with LP Rewards and how they work, read our previous guide here)

Sports markets are often a good fit for this strategy because they usually have high trading activity, tight spreads, and strong liquidity before the match begins.

This increases the likelihood of getting filled on both sides of the market. And even if only one side gets filled initially, active order flow often makes it easier to rebalance or exit the excess position later.

In addition, sports markets commonly support Maker Rebates, frequently include LP Rewards, and tend to generate consistent trading volume throughout the day.

Maker Rebates are not designed to be a standalone source of income. However, for active traders and liquidity providers, they can meaningfully improve execution efficiency and overall profitability over time.

The best opportunities usually appear in highly liquid markets with tight spreads, consistent order flow, and active trading participation.

FAQ

Do all markets support Maker Rebates?

No. Maker Rebates are only available on eligible market categories. For example, Geopolitics markets currently have zero trading fees, which means there are no Maker Rebates available.

Are Maker Rebates paid automatically?

Yes. Rebates are calculated and distributed automatically in USDC on a daily basis.

Can I earn Maker Rebates with market orders?

No. Only maker liquidity qualifies for rebates. Your order must add liquidity to the order book and later get filled by another trader.