Fees and settlement
Canary charges one fee: 1.0 % of winning redemptions in its markets. Everything else the protocol does is free, apart from Solana's own network fees.
| Line | Rate | Who pays |
|---|---|---|
| Settlement fee | 1.0 % of each winning redemption | The winning side, when it redeems |
| Minting and merging pairs | None | |
| Sponsorship | 0 % protocol cut | Every USDC funds the bounty |
| Q-Vault | Free | No deposit, spend or holding fee |
| Network fees and rent | Solana's | Your wallet, per transaction |
Where the fee goes
Fees stay in each market's escrow until they are swept, permissionlessly, by two independent instructions (sweep_treasury and sweep_bounty):
| Share | To |
|---|---|
| 70 % | The buyback vault, whose USDC buys CANARY on the market and burns it |
| 30 % | The bounty vaults |
The bounty share is split across rungs by the open interest their markets carried over time, not at one moment: the program keeps, per rung, the sum of open interest times the slots it was held. A position opened and closed in the same slot adds nothing, so nobody can steer the split.
A worked example
A market on Q-160 at 2027-12-31 resolves NO. Its NO holders redeem 2,000,000 USDC of winning tokens.
| USDC | |
|---|---|
| Gross redemptions | 2,000,000 |
| Settlement fee, 1.0 % | 20,000 |
| Paid to NO holders | 1,980,000 |
| To the buyback vault, 70 %: buys CANARY and burns it | 14,000 |
| To the bounty vaults, 30 % | 6,000 |
Rounding
Amounts are exact integers in USDC's 6-decimal units. The settlement fee is 1 % of a market's cumulative winning redemptions, rounded down, so splitting a redemption never adds fee. The bounty share is 30 % of cumulative fees, rounded down, and the buyback vault receives the rest. Across rungs, the bounty share is split by time-weighted open interest, and any remainder of a unit goes to the largest fractional shares.
Settlement is on chain
Resolution reads the rung's account; redemption pays from the market's own collateral, which is always exactly the number of pairs minted. There is no off-chain step between a rung falling and a winner being able to redeem.