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Overview

Every swap involves various fees that affect the final output amount. dKit provides transparent fee breakdowns to help you understand the true cost of each route.

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Fee Types

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Network Fees (Gas)

Blockchain transaction fees paid to validators/miners.
Fee Structure: Sats per byte Typical Cost: $2-20 per transaction Factors: Network congestion, transaction size
{
  "type": "NETWORK",
  "amount": "50000",      // 0.0005 BTC
  "asset": "BTC.BTC",
  "chain": "BTC",
  "protocol": "BITCOIN"
}
Fee Structure: Base fee + priority fee Typical Cost: $5-50 per transaction Factors: Network activity, transaction complexity
{
  "type": "NETWORK",
  "amount": "5000000000000000",  // 0.005 ETH
  "asset": "ETH.ETH",
  "chain": "ETH",
  "protocol": "ETHEREUM"
}
Fee Structure: Fixed fee per signature Typical Cost: $0.00025 per transaction Factors: Number of signatures, priority fees
{
  "type": "NETWORK",
  "amount": "5000",        // 0.000005 SOL
  "asset": "SOL.SOL",
  "chain": "SOL",
  "protocol": "SOLANA"
}

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Protocol Fees

Fees charged by the swap protocol for facilitating the trade.
ProviderFee StructureTypical Rate
THORChainDynamic based on network costs0.2-0.5%
ChainflipFixed percentage0.1-0.3%
MayaChainSimilar to THORChain0.2-0.5%
JupiterVaries by route0.0-0.3%
1inchPositive slippage capture0.0-0.1%
Example: 
{
  "type": "PROTOCOL",
  "amount": "1000000",        // Amount in asset units
  "asset": "ETH.ETH",
  "chain": "ETH",
  "protocol": "THORCHAIN"
}

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Liquidity Provider Fees

Compensation for liquidity providers who enable the swap. 
{
  "type": "LIQUIDITY",
  "amount": "3000000",        // 0.3% of swap amount
  "asset": "ETH.USDC",
  "chain": "ETH",
  "protocol": "UNISWAP"
}
Typical LP Fees:
  • Stablecoin pairs: 0.01-0.05%
  • Major pairs: 0.05-0.3%
  • Exotic pairs: 0.3-1%

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Affiliate Fees

Optional fees for integrators and affiliates. 
{
  "type": "AFFILIATE",
  "amount": "1000000",        // Custom basis points
  "asset": "BTC.BTC",
  "chain": "BTC",
  "protocol": "THORCHAIN"
}
Setting Affiliate Fees: 
const quote = await getQuote({
  sellAsset: "BTC.BTC",
  buyAsset: "ETH.ETH",
  sellAmount: "1.0",
  affiliate: "myAffiliate",   // THORName or address
  affiliateFee: 100           // 100 basis points = 1%
});

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Tax Fees

Fees for tokens with built-in taxation mechanisms. 
{
  "type": "TAX",
  "amount": "5000000",        // Token's tax amount
  "asset": "ETH.TAXTOKEN",
  "chain": "ETH",
  "protocol": "TOKEN_CONTRACT"
}

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Fee Calculation Examples

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Simple Swap Fee Breakdown

ETH to USDC swap on Ethereum: 
const fees = [
  {
    type: "NETWORK",
    amount: "5000000000000000",    // 0.005 ETH gas
    asset: "ETH.ETH",
    chain: "ETH"
  },
  {
    type: "LIQUIDITY",
    amount: "3000000",              // 3 USDC (0.3% of 1000 USDC)
    asset: "ETH.USDC",
    chain: "ETH"
  }
];

// Total cost: 0.005 ETH + 3 USDC

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Cross-Chain Swap Fees

BTC to ETH via THORChain: 
const fees = [
  {
    type: "NETWORK",
    amount: "50000",                // BTC network fee
    asset: "BTC.BTC",
    chain: "BTC"
  },
  {
    type: "PROTOCOL",
    amount: "200000",               // THORChain fee (0.2%)
    asset: "BTC.BTC",
    chain: "THOR"
  },
  {
    type: "LIQUIDITY",
    amount: "100000000000000",      // LP fee in ETH
    asset: "ETH.ETH",
    chain: "THOR"
  },
  {
    type: "NETWORK",
    amount: "3000000000000000",     // ETH outbound fee
    asset: "ETH.ETH",
    chain: "ETH"
  }
];

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Fee Optimization Strategies

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1. Provider Selection

Compare total fees across providers: 
const compareFees = (routes) => {
  return routes.map(route => {
    const totalFees = route.fees.reduce((sum, fee) => {
      // Convert all fees to USD for comparison
      const feeUSD = convertToUSD(fee.amount, fee.asset);
      return sum + feeUSD;
    }, 0);
    
    return {
      provider: route.providers[0],
      totalFeesUSD: totalFees,
      outputAmount: route.expectedBuyAmount
    };
  }).sort((a, b) => a.totalFeesUSD - b.totalFeesUSD);
};

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2. Timing Optimization

Execute swaps during low-fee periods: 
const getOptimalTiming = async () => {
  // Check gas prices for EVM chains
  const gasPrice = await getGasPrice('ETH');
  
  if (gasPrice.fast > 100) {  // Gwei
    return {
      recommendation: 'WAIT',
      reason: 'High network congestion',
      estimatedSavings: calculateSavings(gasPrice)
    };
  }
  
  return {
    recommendation: 'EXECUTE',
    currentFees: gasPrice.standard
  };
};

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3. Batching Strategies

Combine multiple swaps to amortize fixed fees: 
const shouldBatchSwaps = (swaps) => {
  const individualCost = swaps.reduce((sum, swap) => {
    return sum + estimateNetworkFee(swap);
  }, 0);
  
  const batchedCost = estimateBatchNetworkFee(swaps);
  
  return {
    shouldBatch: batchedCost < individualCost,
    savings: individualCost - batchedCost
  };
};

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4. Route Optimization

Choose routes that minimize fee layers: 
const optimizeForFees = (routes) => {
  return routes.map(route => {
    const feeEfficiency = route.expectedBuyAmount / getTotalFees(route);
    
    return {
      ...route,
      feeEfficiency,
      recommendation: feeEfficiency > 100 ? 'GOOD' : 'EXPENSIVE'
    };
  }).sort((a, b) => b.feeEfficiency - a.feeEfficiency);
};

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Streaming Swap Fees

THORChain streaming swaps have unique fee characteristics: 
// Regular swap (single transaction)
const regularFees = {
  network: "50000",         // One network fee
  protocol: "200000",       // Standard protocol fee
  liquidity: "300000"       // Higher slippage
};

// Streaming swap (multiple sub-swaps)
const streamingFees = {
  network: "50000",         // Still one network fee
  protocol: "200000",       // Same protocol fee
  liquidity: "150000"       // Lower slippage due to smaller chunks
};

// Streaming is beneficial for large swaps despite longer time

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Fee Estimation

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Pre-Quote Estimation

Estimate fees before requesting quotes: 
const estimateFees = (sellAsset, buyAsset, amount) => {
  const estimates = {
    network: estimateNetworkFee(sellAsset.split('.')[0]),
    protocol: amount * 0.003,  // ~0.3% average
    liquidity: amount * 0.003, // ~0.3% average
    total: 0
  };
  
  estimates.total = estimates.network + estimates.protocol + estimates.liquidity;
  
  return estimates;
};

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Dynamic Fee Updates

Monitor fee changes in real-time: 
const monitorFees = async () => {
  const feeWatcher = setInterval(async () => {
    const currentFees = await getCurrentFees();
    
    if (hasSignificantChange(currentFees, lastFees)) {
      // Re-quote if fees changed significantly
      await refreshQuote();
    }
    
    lastFees = currentFees;
  }, 30000); // Check every 30 seconds
};

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Fee Display Best Practices

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1. Transparent Breakdown

Always show users complete fee information: 
const displayFees = (route) => {
  const breakdown = {
    'Network Fees': formatFee(route.fees.filter(f => f.type === 'NETWORK')),
    'Protocol Fees': formatFee(route.fees.filter(f => f.type === 'PROTOCOL')),
    'LP Fees': formatFee(route.fees.filter(f => f.type === 'LIQUIDITY')),
    'Affiliate Fees': formatFee(route.fees.filter(f => f.type === 'AFFILIATE')),
    'Total Fees': formatFee(route.fees)
  };
  
  return breakdown;
};

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2. Relative Fee Display

Show fees as percentage of swap amount: 
const calculateFeePercentage = (fees, swapAmount) => {
  const totalFeeValue = fees.reduce((sum, fee) => {
    return sum + convertToBaseAsset(fee.amount, fee.asset);
  }, 0);
  
  return (totalFeeValue / swapAmount * 100).toFixed(2) + '%';
};

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3. Fee Impact Visualization

Help users understand fee impact: 
const visualizeFeeImpact = (route) => {
  const inputValue = convertToUSD(route.sellAmount, route.sellAsset);
  const outputValue = convertToUSD(route.expectedBuyAmount, route.buyAsset);
  const feeValue = inputValue - outputValue;
  
  return {
    inputUSD: inputValue,
    outputUSD: outputValue,
    feesUSD: feeValue,
    feePercentage: (feeValue / inputValue * 100).toFixed(2),
    impact: getFeeImpactLevel(feeValue / inputValue)
  };
};

const getFeeImpactLevel = (percentage) => {
  if (percentage < 0.005) return 'MINIMAL';
  if (percentage < 0.01) return 'LOW';
  if (percentage < 0.03) return 'MODERATE';
  if (percentage < 0.05) return 'HIGH';
  return 'VERY_HIGH';
};

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Common Fee Scenarios

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High-Frequency Trading

For frequent swaps, minimize per-transaction costs:
  • Use providers with no protocol fees
  • Batch transactions when possible
  • Choose chains with low network fees
  • Consider fee rebate programs

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Large Value Swaps

For large amounts, optimize for percentage fees:
  • Use streaming swaps to reduce slippage
  • Negotiate affiliate fee sharing
  • Consider OTC alternatives for very large amounts
  • Split across multiple routes if beneficial

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Cross-Chain Arbitrage

Factor all fees into profit calculations:
  • Include both inbound and outbound network fees
  • Account for time value during execution
  • Consider MEV protection costs
  • Calculate break-even thresholds
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