> ## Documentation Index
> Fetch the complete documentation index at: https://docs.limitless.exchange/llms.txt
> Use this file to discover all available pages before exploring further.

# User-generated markets

> Markets created by users and how the creator fee works

## Overview

**User-generated markets** are prediction markets created by users rather than by the
Limitless team. They carry a green **Community** badge across the app. Anyone can
create one, and the creator earns a share of the trading fees their market generates —
an incentive to launch markets people actually want to trade.

<Info>
  A user-generated market is identified by its **Community** badge. Markets created by
  the Limitless team do not have a creator fee.
</Info>

## The creator fee

When a user-generated market is created, a **creator fee** is attached to it. This fee
is a share of the **trading (taker) fees** the market generates, and it is paid to the
market's creator.

| Property               | Detail                                                                         |
| ---------------------- | ------------------------------------------------------------------------------ |
| **What it applies to** | Taker fees generated by trades in the market                                   |
| **Rate**               | Set when the market is created — may vary between markets and change over time |
| **Who receives it**    | The market creator's wallet                                                    |
| **Token**              | USDC                                                                           |
| **When**               | Paid daily, on the same schedule as [maker rebates](/user-guide/maker-rebates) |

<Note>
  The creator fee is **stamped onto each market when it is created and frozen for that
  market's lifetime**. The exact rate can differ between markets and may be adjusted for
  new markets over time, so check a market's **Community** badge for its current rate.
  Changing the platform-wide rate never changes the fee on a market that already exists.
</Note>

## How the creator fee interacts with maker rebates

This is the important part for market makers. On a user-generated market, **the creator
fee is taken first**, off the top of the market's trading fees. The
[maker rebate](/user-guide/maker-rebates) pool is then funded from **what remains**.

In other words, on user-generated markets a maker rebate is **not** computed on the full
trading-fee amount — it's computed on the fees left after the creator's cut.

### Order of operations

<Steps>
  <Step title="Collect trading fees">
    The market collects taker fees from trades during the day (UTC).
  </Step>

  <Step title="Creator takes their cut first">
    The creator is paid their fee out of the market's total trading fees.
  </Step>

  <Step title="Maker rebate pool is funded from the remainder">
    The maker rebate pool for that market is funded from the **remaining** fees, at the
    market's rebate rate.
  </Step>

  <Step title="Payouts are distributed daily in USDC">
    Both the creator fee and the maker rebates are paid out daily in USDC.
  </Step>
</Steps>

### Conceptual formula

```
Creator payout    = Trading fees × Creator fee rate
Maker rebate pool = (Trading fees − Creator payout) × Rebate rate
```

The maker rebate is measured against the fees that remain after the creator's cut, not
the full trading-fee amount. The larger a market's creator fee, the smaller the share
left to fund its maker rebate pool.

## Markets created by Limitless

Markets created by the Limitless team have **no creator fee**. On those markets, the full
eligible taker-fee amount funds the maker rebate pool (subject to the market's rebate
rate), exactly as described in [Maker rebates](/user-guide/maker-rebates).

## Summary

* User-generated markets are created by users and carry a **Community** badge.
* The creator earns a share of the market's trading fees.
* The creator fee is **taken first**; maker rebates are funded from the remainder.
* The exact rate is set per market, can vary, and is **frozen per market** at creation —
  check the badge for a market's current rate.
* Creator fees and maker rebates are both paid **daily in USDC**.