How does a prediction market operator make money?

Operators generate revenue from five distinct streams, all configurable through the revenue engine: maker fees (charged when users place limit orders), taker fees (charged on market orders that execute immediately), sell fees (applied when users exit positions early), resolution fees (a percentage of winning payouts, collected as either Payout Fee or Pool Margin), and AMM spread income (the margin earned by the AMM on every algorithmic trade). Together, these typically yield 3 to 5% of total trading volume as operator revenue, without taking any directional risk on outcomes.