Fees
Last updated
Last updated
When you execute a swap on the Kinetic platform, understanding the fees and their impact is crucial to making informed trading decisions. This guide outlines the different types of fees, how they work, and where you can find them during your swap experience.
Liquidity Provider Fees
A small percentage of your swap amount goes to the liquidity providers who enable the trade. For example, a fee of 0.3% is common for Raydium and Meteora pools.
Network Fees (Gas)
Every transaction on Solana requires a network fee, paid in SOL, to validate and process your transaction. These fees vary depending on network activity.
Kinetic Platform Fees
A transparent platform fee may apply for aggregating liquidity and routing trades across multiple AMMs. There are currently zero Kinetic Platform Fees
Slippage Impact
Slippage can also affect your transaction’s final cost by changing the price you receive for your tokens. While not a "fee" in the traditional sense, it’s an important factor to account for.
The Kinetic platform provides full transparency into fees and estimates at every stage of the swap process:
Quote Details:
Exchange Rate: Displays the real-time rate for the selected token pair, based on on-chain prices.
Network Cost: Shows the network fee in SOL and its equivalent in USD.
Max Slippage %: The percentage deviation you're willing to accept from the quoted output amount.
Swap Summary:
Price Impact: The effect of your trade on the market price due to pool liquidity.
Minimum Received: The guaranteed minimum amount you'll receive after accounting for slippage and liquidity.
Max Transaction Fee: The upper limit of fees you’ll pay for the transaction.
These details ensure you're fully informed before confirming your swap.
Slippage refers to the difference between the expected and actual price of a token during your transaction. It’s more likely to occur with low-liquidity tokens or during periods of high market volatility.
Default Setting: Kinetic sets slippage tolerance to 1%, ensuring minimal deviation for stable trades.
Adjusting Slippage: Use the Advanced Settings menu to modify your tolerance up to 100% for trades in highly illiquid tokens. Be cautious with higher tolerances, as they increase risk.
Check Liquidity:
Tokens with higher liquidity (e.g., USDC, SOL) typically result in lower price impact and fewer fees.
Set Appropriate Slippage:
Default settings are ideal for most users. Adjust slippage only for illiquid tokens where higher tolerance is necessary.
Review Quote and Summary:
The Kinetic platform provides clear estimates of fees and the minimum output you can expect. Always review these before confirming your trade.
Trade During Low Network Activity:
Network fees are lower during periods of reduced congestion.
Understanding fees helps you:
Accurately estimate the total cost of your swap.
Avoid surprises from slippage or unexpected network costs.
Make smarter decisions about which tokens to trade and when.
By offering a transparent and user-friendly experience, Kinetic ensures you have all the information you need to trade with confidence.
