Betfair charges a Commission on your net winnings on Exchange markets. If you have a net loss on a market you do not pay commission.
Commission is calculated by multiplying your net winnings by the Market Base Rate. From this we will apply a discount. The more you bet with us the greater the discount you will receive.
The size of this discount, or your Discount Rate, is determined by the number of Betfair Points you have accrued on your account. Betfair Points are earned in proportion to your betting activity - the more you bet, the more points you accrue, the greater your Discount Rate.
You earn Betfair Points every time you bet on a market. You will earn 1 point for every 10 pence of commission paid (if you have net winnings) or implied commission (if you have a net loss). Implied commission is calculated in exactly the same way as commission but refers to losses rather than winnings. Betfair Points are awarded equally whether you win or lose.
Example: You have net winnings in a market of £400. The Market Base Rate is 5%. Your current Discount Rate is 40%. Therefore the commission you pay is £12 (£400 x 5% x (1-40%)). You earn 120 Betfair Points.
For the purpose of calculating Betfair Points your commission or implied commission on a market is rebased to British Pounds at the time of settlement.
Once your Discount Rate has been calculated, your Betfair Points balance is reduced by 15%. This is known as the Weekly Decay. If you continue to bet at the same level each week, your Discount Rate will remain unchanged. If your Betfair Points at any time imply a higher Discount Rate, you will move to that rate immediately.
Discount Rates are applied at the time of market settlement rather than bet placement. Bear this in mind when betting in long term markets.
The Betfair Points Statement within your My Account section provides a full history of your Betfair Points, and shows changes as a result of your betting activity, weekly decay and any relevant promotions. This statement also shows your current Discount Rate.
You are able to prevent the weekly decay of your Betfair Points by using a Betfair Holiday. You may continue to bet during your Betfair Holiday but will not earn Betfair Points for any markets settled during this period.
You earn one Betfair Holiday when you register and one additional Betfair Holiday every three months thereafter. You may use your Betfair Holiday at any time but cannot accrue more than four unused Betfair Holidays on your account.
The Betfair Holidays section within the My Account section provides a calendar of the next 26 weeks and enables you to book or cancel Betfair Holidays for any of these weeks.You may book or cancel your holiday anytime up to three hours before the decay occurs (Sunday at midnight GMT).