Protocol Fee
Mouth charges a 2% fee on the total pot, collected immediately when the opponent deposits. The fee is sent to the Mouth treasury at deposit time — not at resolution. This means funds in the escrow contract are always net of fees.When Is the Fee Collected?
- PvP (1v1): The 2% fee on the total pot is collected the moment the Opponent deposits. Both deposits are locked, and the fee is transferred to treasury immediately.
- Open PvP: The fee is collected proportionally as each opponent deposits. Each deposit triggers a fee transfer for that opponent’s share of the total pot.
Fee Calculation
| Scenario | Challenger | Opponents (total) | Total Pot | Fee (2%) | Collected When |
|---|---|---|---|---|---|
| PvP 1v1 | $500 | $500 | $1,000 | $20 | Opponent deposits |
| Open PvP fully filled | $1,000 | $1,000 (3 users) | $2,000 | $40 | As each opponent deposits |
| Open PvP partially filled | $1,000 → $700 active | $700 (2 users) | $1,400 | $28 | As each opponent deposits |
- Challenger deposits $1,000
- Opponent A deposits $400 → fee on matched portion: 2% of $800 = $16 → treasury
- Opponent B deposits $350 → fee on matched portion: 2% of $700 = $14 → treasury
- Opponent C deposits $250 → fee on matched portion: 2% of $500 = $10 → treasury
- Total fee collected: $40 (2% of $2,000 total pot)
Mutual Cancellation
If both parties agree to cancel an active bet, each party receives their remaining deposit back (fee was already collected at deposit time). No additional fee is charged for mutual cancellation — the standard 2% has already been deducted.When Fees Are NOT Charged
- Bet not accepted — Challenger withdraws before any opponent deposits, no fee
- Expired bet — Acceptance deadline passes with no fills, Challenger reclaims, no fee
- Open PvP unfilled portion — The Challenger’s unfilled amount from a partially filled Open PvP Bet is returned with no fee
Why 2%?
- Lower than most PvP betting platforms (typically 3-5%)
- Collected upfront at deposit time — simple and transparent
- Competitive enough to prevent users from doing OTC bets outside the platform