Service Fee

Liquidity Removal Fees for LPs

When liquidity providers (LPs) decide to exit their roles as market makers and withdraw their corresponding liquidity, our platform imposes reasonable service fees. These fees are specifically targeted at LPs, with a portion reimbursed to liquidity pool creators, depending on the platform's operational performance. The remaining fees will contribute to the platform's revenue, supporting its long-term growth.

• Who is charged: LPs

• When fees are collected: Upon the removal of liquidity by LPs

• Fee base: The amount of liquidity withdrawn and any associated profits

• Fee rate: Initially set at a low rate or possibly waived, with future rates determined by platform governance.

Service Fee rate imposed consists of two parts, base fee rate $r_b$​ and profit fee rate $r_p$​ . rprp​is slightly higher than $r_b$​, with the formula of total service fee calculated as below: $f_s= removal x r_b + profit x r_p$