# Fees & Collateral

## Fees

Meridian Predict does not charge trading fees. You stake your collateral, the counterparty stakes theirs, and the winning side redeems the entire pool; the protocol does not take a cut. The only capital at risk in a prediction is the collateral you commit.

## Collateral

Meridian Predict positions are collateralized in **USDe**, Ethena's synthetic dollar. Your stake, your counterparty's stake, and all payouts are denominated in USDe.

When you place a trade, your stake is escrowed by the smart contract alongside the counterparty's collateral. The combined pool is paid out to the winning side at [settlement](/trading/predictions/resolution-and-settlement) and collected when you redeem.