What is an LP fee?
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Every swap pays a fee that is deducted from the input token. The fee is split between liquidity providers and — on eligible pools — a protocol fee directed toward the CTN burn mechanism.
Only in-range positions receive their share of the fee. Positions whose bounds do not contain the spot price at the moment of the swap earn nothing.
Fee split by version and tier
| Version | Fee tier | LP share | Protocol share |
|---|---|---|---|
| v2 | All pools | 0.25 % | 0.05 % |
| v3 | 0.01 % | 0.0075 % | 0.0025 % |
| v3 | 0.05 % | 0.0375 % | 0.0125 % |
| v3 | 0.30 % | 0.25 % | 0.05 % |
| v3 | 1.00 % | 0.8334 % | 0.1666 % |
Not all v3 pools have the protocol fee enabled.
For the mathematical details of fee calculation and per-position distribution, see Fees.