> ## Documentation Index
> Fetch the complete documentation index at: https://cyphers-3138df4b.mintlify.site/llms.txt
> Use this file to discover all available pages before exploring further.

# Fees and odds

> What you pay on each bet, how odds are computed, and how payouts get calculated.

Every bet has two fees deducted up front. Whatever's left enters the pool and earns you a payout if you win.

## Fee breakdown

```mermaid theme={null}
flowchart LR
    B["Your bet<br/>$5.00"] -->|"0.5%"| PF["Protocol<br/>$0.025"]
    B -->|"1.5%"| CF["Creator<br/>$0.075"]
    B -->|"97%"| P["Into pool<br/>$4.90"]
```

| Fee                | Typical | Max  | Goes to           |
| ------------------ | ------- | ---- | ----------------- |
| Protocol fee       | `0.5%`  | `1%` | Protocol treasury |
| Market-creator fee | `1.5%`  | `5%` | Market creator    |

Total typical cost: **`2%`** per bet. For comparison, traditional sportsbooks charge `5–10%`.

<Tip>
  The app shows you the exact fees before you confirm. Always check there — rates can be updated by the protocol.
</Tip>

## How odds work

Each side has a pool — the running total of USDC bet on that option. Your potential payout comes from the ratio of the total pool to the side you bet on:

```
entryOdds = totalPool / yourSidePool
```

**Example:** `$3,000` on YES, `$1,000` on NO — total pool `$4,000`.

* Bet YES → `4000 / 3000 = 1.33×` your net stake if YES wins.
* Bet NO → `4000 / 1000 = 4×` your net stake if NO wins.

Your `entryOdds` are **locked in** the moment your bet lands. Bets that come in after yours don't change your payout.

## Settlement payout

When the market closes, Arcium decrypts every position and the protocol computes a final **payout ratio** to ensure total payouts don't exceed the vault. In normal markets this is close to `1`. In edge cases (imbalanced pools, high fees), it can be slightly lower.

The app shows your projected payout in the Positions tab. When you claim, the protocol pays out automatically.

## Creator bond

Opening a market requires a **USDC bond** of at least `$20`. The bond is held until resolution and returned — with accumulated creator fees — when the market closes cleanly.

The bond prevents market spam and gives the creator a reason to resolve correctly. It's collateral, not a fee.

## What's next

* [Market lifecycle](/how-it-works/lifecycle) — when fees apply and when you can claim.
* [Place a bet](/guides/place-a-bet) — how to bet and read the fee preview.
* [Create a market](/guides/create-a-market) — the bond you'll need to post.