Fee Structure

Every swap generates fees. Here’s exactly where they go.

Current pool fees

Fee rates are set per pool at creation. The main CIPHER/USDC pool runs at 2%, which is higher than most DEXs but the concentrated liquidity means LPs earn significantly more per dollar deployed.

How fees split

The percentages above are of total fees. So on a 2% fee pool, LPs get 1% and the ecosystem gets 1%. Of that ecosystem 1%, stakers get 0.75%, NFT holders get 0.15%, and the DAO gets 0.1%.

Dynamic fees

The protocol tracks recent price movements with a volatility counter. When the market gets choppy, fees automatically tick up to protect LPs from impermanent loss. When things calm down, fees drop back to the base rate.

You don’t need to do anything. It happens at the protocol level.

Auto-compounding

LP fees don’t pile up in a separate account. They compound directly into the bin’s reserves. Your share of the bin grows with every swap that passes through it.

This is tracked with Q128 fixed-point math (very precise, no rounding issues). The result: your position value goes up automatically without you needing to claim and re-deposit.

Fee math example

With Jupiter routing live and multiple pools, $50K/day in volume is realistic. Here’s how the math works:

Daily volume:              $50,000
Fee rate:                  2% (200 bps)
Total daily fees:          $1,000

LP share (50%):            $500/day   (auto-compounds into positions)
Ecosystem share (50%):     $500/day
  → Stakers (75%):         $375/day   = $2,625/week
  → NFT holders (15%):     $75/day    = $525/week
  → DAO (10%):             $50/day    = $350/week

And this is just one pool. Every new pool on Orbit Finance adds to the total.