Fees

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.

Fee Types

Network Fees (Gas)

Blockchain transaction fees paid to validators/miners.

Bitcoin

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"
}

Ethereum

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"
}

Solana

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"
}

Protocol Fees

Fees charged by the swap protocol for facilitating the trade.

Provider	Fee Structure	Typical Rate
THORChain	Dynamic based on network costs	0.2-0.5%
Chainflip	Fixed percentage	0.1-0.3%
MayaChain	Similar to THORChain	0.2-0.5%
Jupiter	Varies by route	0.0-0.3%
1inch	Positive slippage capture	0.0-0.1%

Example:

{
  "type": "PROTOCOL",
  "amount": "1000000",        // Amount in asset units
  "asset": "ETH.ETH",
  "chain": "ETH",
  "protocol": "THORCHAIN"
}

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%

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%
});

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"
}

Fee Calculation Examples

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

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"
  }
];

Fee Optimization Strategies

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);
};

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
  };
};

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
  };
};

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);
};

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

Fee Estimation

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;
};

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
};

Fee Display Best Practices

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;
};

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) + '%';
};

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';
};

Common Fee Scenarios

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

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

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

Monetization

Getting Started

Core Concepts

Overview

Fee Types

Network Fees (Gas)

Protocol Fees

Liquidity Provider Fees

Affiliate Fees

Tax Fees

Fee Calculation Examples

Simple Swap Fee Breakdown

Cross-Chain Swap Fees

Fee Optimization Strategies

1. Provider Selection

2. Timing Optimization

3. Batching Strategies

4. Route Optimization

Streaming Swap Fees

Fee Estimation

Pre-Quote Estimation

Dynamic Fee Updates

Fee Display Best Practices

1. Transparent Breakdown

2. Relative Fee Display

3. Fee Impact Visualization

Common Fee Scenarios

High-Frequency Trading

Large Value Swaps

Cross-Chain Arbitrage

​Overview

​Fee Types

​Network Fees (Gas)

​Protocol Fees

​Liquidity Provider Fees

​Affiliate Fees

​Tax Fees

​Fee Calculation Examples

​Simple Swap Fee Breakdown

​Cross-Chain Swap Fees

​Fee Optimization Strategies

​1. Provider Selection

​2. Timing Optimization

​3. Batching Strategies

​4. Route Optimization

​Streaming Swap Fees

​Fee Estimation

​Pre-Quote Estimation

​Dynamic Fee Updates

​Fee Display Best Practices

​1. Transparent Breakdown

​2. Relative Fee Display

​3. Fee Impact Visualization

​Common Fee Scenarios

​High-Frequency Trading

​Large Value Swaps

​Cross-Chain Arbitrage

Overview

Fee Types

Network Fees (Gas)

Protocol Fees

Liquidity Provider Fees

Affiliate Fees

Tax Fees

Fee Calculation Examples

Simple Swap Fee Breakdown

Cross-Chain Swap Fees

Fee Optimization Strategies

1. Provider Selection

2. Timing Optimization

3. Batching Strategies

4. Route Optimization

Streaming Swap Fees

Fee Estimation

Pre-Quote Estimation

Dynamic Fee Updates

Fee Display Best Practices

1. Transparent Breakdown

2. Relative Fee Display

3. Fee Impact Visualization

Common Fee Scenarios

High-Frequency Trading

Large Value Swaps

Cross-Chain Arbitrage