Does this apply to me?
Prediction Markets are currently only available to Luno customers in South Africa and Nigeria.
Prediction Markets enable you to make daily and hourly predictions on the prices of leading cryptocurrencies, then receive payouts if your prediction is correct. There are several transactions involved in that journey, and these are the costs and fees that some of those transactions incur.
Predictions Wallet transfers: free
Luno does not charge you any transfer costs for moving USDC into and out of your USDC Predictions wallet.
Buying or selling your position: Limitless fee
Prediction Markets on Luno are powered by Limitless, a peer-peer decentralised exchange operating on the blockchain.
Limitless dynamically adapts their fee based on several factors, including the probability of the outcome:
- Buy fees range from 0.03% to 3% — the higher the probability of event, the lower the fee.
- Sell fees start at 0% and gradually rise to 1.5% as the event probability approaches 50%.
You will see the estimated fee when you are buying or selling your position. The final fee incurred can be viewed in the transaction history of your USDC prediction wallet.
Note
Visit Limitless to learn more about their adaptive fee structure.
Receiving your payout: network fee
If you make a prediction successfully, you’ll get a payout sent to your USDC Predictions wallet via the blockchain. This transfer incurs a network fee that the blockchain protocol calculates based on how busy the network is.
You’ll need to claim the payout to initiate that transfer. Any unclaimed payouts will be automatically sent to your USDC Predictions wallet after 30 days, minus whatever the network fee is at that time.