> For the complete documentation index, see [llms.txt](https://docs.mmt.finance/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.mmt.finance/core-products/momentum-dex/core-mechanics/fees.md).

# Fees

**Swap Fees**

Momentum’s CLMM distributes swap fees to liquidity providers who maintain active positions within the current price range. When a trade occurs, fees are proportionally allocated to LPs whose liquidity is being utilized. If the market price moves beyond a position’s range, it temporarily stops earning fees until it reactivates.

Rather than blending fees directly into liquidity, Momentum tracks earned fees separately. This gives LPs full control over when to claim their rewards without modifying or removing their liquidity.

All transactions and fee distributions occur autonomously through smart contracts deployed on Sui, Aptos, and Movement Labs. The protocol is entirely decentralized, allowing users to manage liquidity without intermediaries.

**Fee Tiers**

Momentum employs a tiered fee structure, allowing the market to self-regulate and find optimal liquidity distribution. The protocol supports six fee tiers: 0.01%, 0.05%, 0.1%, 0.25%, 1%, and 2%, each tailored to different asset types and trading behaviors:

<table data-header-hidden><thead><tr><th width="133"></th><th width="220"></th><th></th></tr></thead><tbody><tr><td><strong>Fee Tier</strong></td><td><strong>Asset Type</strong></td><td><strong>Use Case</strong></td></tr><tr><td><p><strong>Low</strong></p><p>(0.01%–0.1%)</p></td><td>Stablecoin pairs, high-liquidity assets</td><td>Minimal price impact trading; ideal for tight spreads and large trades.</td></tr><tr><td><p><strong>Mid</strong></p><p>(0.25%)</p></td><td>Major assets like ETH, BTC</td><td>Balanced approach between volume and liquidity provider incentives.</td></tr><tr><td><p><strong>High</strong></p><p>(1%–2%)</p></td><td>Volatile or exotic assets</td><td>Compensates LPs for greater risk and potential impermanent loss.</td></tr></tbody></table>

This flexible fee system ensures liquidity is efficiently allocated while providing traders with cost-effective swaps.

\
**Protocol Fees**

To keep the engine running and fund protocol growth, a small slice of each swap fee (default: 20%) is redirected to the Momentum treasury.\
100% of trading incentives are directed to liquidity providers, keeping them fully rewarded for their contribution to the ecosystem.\\


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