# Trading Fees

## Trading Fees

Users incur fees when swapping tokens, and the fee structure differs between V2 and V3 liquidity pools:

* **V2 Liquidity**: In V2, fees remain uniform (***0.3%***) across the entire liquidity pool for a token pair. Trades routed exclusively through V2 incur a fee determined by the liquidity provider for that pool, applied as a percentage of the trade amount.
* **V3 Liquidity**: V3's fee structure varies within different price ranges or liquidity positions. Trades routed through V3 encounter fees contingent on the specific price range they interact with. Consequently, if a trade spans multiple ranges, it incurs varying fees based on each range's fee tier. Below is the list of available fee tiers each liquidity provider can set for their V3 liquidity positions:
  * 0.05%
  * 0.3%
  * 1%
  * 2%
* **Both V2 and V3 Liquidity**: Trades routed through both V2 and V3 liquidity accrue fees based on the specific pools and price ranges they engage with along their path. Fees accumulate from multiple pools or different price ranges across V2 and V3 liquidity, resulting in a cumulative fee for the trade.
* **Advanced Orders**: An additional fee of 0.17% that goes to incentivize [Orbs Network](https://www.orbs.com/).

## Trading Fees Split

Since the fee switch is turned on at Kodiak's launch, trading fees generated on the Kodiak DEX are split in the following way for the different liquidity provision options:

V3  Trading Fees:

* Liquidity Providers (LP): 65%
* Protocol: 35%

V2 Trading Fees:

* Liquidity Providers (LP): 83.33%
* Protocol: 16.67%


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