Recently, I noticed a TAO promotion from a leading exchange and couldn't help but analyze it for everyone—especially since this fee mechanism really deserves some scrutiny.



Let's start with the core question: $TAO premium plan versus no premium plan, which one is more cost-effective? Particularly for new players.

**Here's the data comparison:**

The event is scheduled to start at 7 PM on 1.12. Assume the opening position is around 0.88. With a fee of 2% deducted every 4 hours, six times a day, over three days, what’s the outcome?

Premium plan: 70 coins × 0.88 = starting at 61U. The fees are -2% × 6 times × 3 days = -36 basis points, which is 61U × -0.36% ≈ -22U. Final amount received: 39U.

No-premium plan (assuming rewards at a price of 0.38): 70 × 0.38 = 26U directly received.

Difference? 13U. It looks like the premium plan is more profitable, but there are pitfalls.

**Who should play, and who shouldn’t:**

Workshops and experienced traders might consider the premium plan if they can time it precisely and have strong risk tolerance. But retail investors? My advice is to avoid it. For beginners, forget it—opening short positions at 0.88 carries significant risk. If the price surges to 0.95 or higher, liquidation becomes easy, and it ties up a lot of capital, which isn’t cost-effective.

**Estimated expected returns for the event:**

- At 0.88: 61U
- At 0.6: 42U
- At 0.52: 36U
- At 0.45: 32U (a reasonable scenario)
- At 0.38: 26U (a bad scenario)
- At 0.3: 21U (an extreme scenario)

**Critical flaws in the fee logic:**

The coin price fluctuates by 2-4%, and the fee mechanism design makes participants prone to losses. In the end, it’s very hard to outperform the market. The fee structure is fundamentally unfeasible—that’s my straightforward judgment.

What do you all think? Let’s discuss in the comments.
TAO2,14%
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RugpullAlertOfficervip
· 01-12 06:02
Damn, it's the same fee structure design again. The exchange is really incredible, slicing retail investors like a bunch of leeks. By the way, opening a short at 0.88 with direct liquidation risk—my friend got caught last week and lost big. Hey, isn't the no-protection plan at 26U really just giving it away? Feels like it's better not to play at all. The premium plan losing 22U is outrageous. Are there still people making money? Is it all just relying on the studio's auto-trading? This fee mechanism clearly seems designed for big players. No matter how we retail investors play, we always lose.
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SignatureDeniedvip
· 01-11 11:58
It's the same fee logic for this round of rug pulls, deducting 2% every 4 hours? Ridiculous. Honestly, retail investors should stay away. Studio teams can afford this time gap game, but we can't. A fee of 22U over 3 days is unbearable for anyone. Not to mention having to bet on the price trend. This activity design is a bit disgusting. A no-loss plan of 26U feels more secure, what are we gambling for? The data looks good, but in practice, you're just getting taken. I've seen too many of these activities. 0.88 shorting with liquidation risk is indeed high, especially for beginners without experience. The fact that fees eat into profits, exchanges are very clear about this, we can't outsmart them. Instead of pondering this mechanism, it's better to just quit. It feels like all top exchanges' activities follow this same routine, and it won't change.
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BTCWaveRidervip
· 01-10 01:56
This fee mechanism is really awesome, retail investors are just here to give away money. --- The premium plan at 39U, might as well go all-in on spot trading directly. --- Wait, deduct 2% every 4 hours? After three days, still 39U? That doesn't add up for me. --- Skip +1, I've seen too many of these trap activities, exchanges just play retail investors like this. --- Open a short at 0.88 and wait for liquidation, there's really no need. --- The studio playing this is also gambling, don't pretend like they can make money. --- Talking about a 13U gap casually, for a newbie that's basically full position. --- The fee structure is unfeasible, why are you still writing such detailed analysis? Just say don't play it. --- Haha, another activity that looks like you can make money but actually causes heavy losses. --- The risk of liquidation is right here, who would dare to move then?
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AirdropCollectorvip
· 01-10 01:40
It's the same "premium" scam again, I've seen through it long ago. Retail investors just get harvested when they get in.
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AllTalkLongTradervip
· 01-10 01:39
Once again, it's the same fee structure designed to cut the leeks. It seems profitable but is actually a scam. --- 22U fee cost? Might as well go all-in on spot trading directly, at least it's worry-free. --- 0.88 short position and still want to survive? The exchange is betting on retail traders getting liquidated. --- Deducted every 4 hours, isn't this a timed bomb? Whoever wants to play, go ahead. --- Older brother's analysis is spot on—it's all about one sentence: the exchange makes money, and we are destined to lose. --- Insurance premium vs. no insurance? Not playing either is the right way. --- Such activities should be left to the studios to take the hit; retail traders just watch the show. --- 39U and 26U, a difference of 13U, which is a matter of life and death. I don't trust either one.
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