# Fees

Every Kumbaya pool charges a small fee on every swap. That fee gets split between the people providing liquidity and the protocol itself. There's nothing else baked on top — no interface fee, no hidden tax. The pool's swap fee is the only fee a trader pays.

For an overview of the fee tiers themselves (0.01%, 0.05%, 0.30%, 1.00%) and how fees accumulate inside your position, see [**What is concentrated liquidity?**](/liquidity/concentrated-liquidity.md) and [**Adding liquidity**](/liquidity/add-liquidity.md).

## The protocol fee

The **protocol fee** is the cut Kumbaya governance takes from the swap fee before the rest goes to LPs. Crucially, it doesn't change what traders pay — it just changes how the existing swap fee is split.

The protocol fee depends on the pool's fee tier:

| Pool type                                     | Fee tier  | Protocol fee                          | What LPs earn         |
| --------------------------------------------- | --------- | ------------------------------------- | --------------------- |
| **Standard pools** (Pool page)                | **0.01%** | 25%                                   | 75% of swap fees      |
| **Standard pools** (Pool page)                | **0.05%** | 25%                                   | 75% of swap fees      |
| **Standard pools** (Pool page)                | **0.30%** | \~16.67% (1/6)                        | \~83.33% of swap fees |
| **Standard pools** (Pool page)                | **1.00%** | \~16.67% (1/6)                        | \~83.33% of swap fees |
| **Launchpad-originated pools** (`FireLaunch`) | 1.00%     | 0% (protocol takes its cut elsewhere) | 100% of swap fees     |

These splits keep Kumbaya **in line with the industry standard** — Uniswap caps protocol fees at 25% on its own deployments, and Kumbaya's lower tiers match that ceiling while the higher tiers come in below it. So an LP on a 0.30% pool earns about 0.25% per swap (the other \~0.05% is the protocol fee); on a 1% pool, they earn about 0.83%.

## How the cap works

At the contract level the protocol fee can technically go up to 50% (Kumbaya's V3 fork allows a wider range than upstream). The current values above sit well below that cap and within Uniswap's standard range.

For the technical mechanics of how the protocol fee is computed inside the V3 contract (`feeAmount / feeProtocol`), see the developer docs on [**Differences from Uniswap V3**](https://github.com/Kumbaya-xyz/documentation/blob/main/developer/dex/differences-from-uniswap.md).

## Where the fees go

Protocol fees fund Kumbaya's infrastructure, ongoing development, and ecosystem alignment with MegaETH.

For launchpad pools specifically, the equivalent of "protocol fees" is taken via a separate fee-streaming system rather than through the V3 protocol-fee mechanism — see [**Creator fees**](/launchpad/creator-fees.md) for how that works on the launchpad side.

## Where to next

* [**Adding liquidity →**](/liquidity/add-liquidity.md) — pick a tier and provide liquidity
* [**Removing liquidity and collecting fees →**](/liquidity/remove-liquidity.md) — claim what you've earned
* [**Creator fees →**](/launchpad/creator-fees.md) — how launchpad creators get paid


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