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The bond/stake model

Flew uses a Bond/Stake model to incentivize creators and maintain market quality.

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Creator bond

When a market is created, the creator must deposit a creator bond (usually 1 SOL).
  • Role: Acts as collateral and provides the initial liquidity pool for Yes/No outcomes.
  • Protection: The bond is protected on-chain. It can’t be used for payouts to winners or drained by bettors.
  • Withdrawal: After the market has been resolved, the creator can withdraw their bond in full.

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Bond forfeiture

If a market is not resolved within its expected timeframe, the creator’s bond may be forfeited. These forfeited funds are typically moved to a protocol-managed vault or used to compensate affected users.

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LP and protocol fees

Every bet placed on the Flew platform includes small fees that help sustain and reward the ecosystem’s participants.

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LP fee (liquidity provider fee)

  • Rate: Usually 1.5% (but can vary up to a maximum of 5%, depending on market policy).
  • Purpose: This fee is collected from each bet and accumulated in the market’s LP fee pool.
  • Claiming: The market creator (as the primary LP) can claim these fees once the market has been resolved.

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Protocol fee

  • Rate: A small, flat fee set at the global protocol level.
  • Purpose: This fee is used to maintain the core Flew infrastructure, research, and future development of the platform.

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How fees are calculated

When you place a bet, your total cost is: Net Bet Amount + LP Fee + Protocol Fee = Total Cost Example (at 1.5% LP fee and 0.5% protocol fee): If you bet 1 SOL:
  • Net Bet: ~0.980 SOL
  • LP Fee: ~0.015 SOL
  • Protocol Fee: ~0.005 SOL
  • Total: 1 SOL
The exact fee breakdown is calculated on-chain during the encryption and processing of your bet, ensuring that all platform participants are fairly rewarded.