Fees in Quantex

LP Swap Fees

In Quantex, swap fees are shared among all active liquidity within a position's price range. When the market price exits this range, the liquidity turns inactive and stops earning fees. If the price swings back into the range, the liquidity reactivates, resuming fee accumulation. Unlike previous systems, these swap fees aren't reinvested automatically. They're collected separately and must be claimed manually by the owner.

Pool Fee Tiers

Quantex offers multiple pools for each token pair, each with its unique swapping fee. You can initially pick from three fee levels: 0.05%, 0.30%, and 1%. Quantex governance might introduce more tiers later on.

In the past, separate pools meant fragmented liquidity and a higher price impact for traders. However, with Quantex's concentrated liquidity model, these issues are mitigated, making it practical to offer diverse fee options without compromising liquidity or pricing.

Choosing the Right Pool Fee

Assets are likely to converge on fee tiers that best match their volatility levels. For instance:

• Low volatility assets (like stablecoins) will prefer the lowest fee tier, minimizing price risk for liquidity providers and ensuring swappers get the best possible trade price.

• More volatile or exotic assets might lean towards higher fee tiers, compensating liquidity providers for the increased risk of holding these assets over time.

Protocol Fees

Quantex also includes a protocol fee, adjustable by Quantex governance, ensuring a flexible and responsive fee structure in tune with the community's needs and market dynamics.