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Fees, Slippage & Price Impact

Whenever you make a trade or provide liquidity on OctoSwap, it's important to understand how fees, slippage, and price impact work. These factors affect the final outcome of your transaction and your overall returns.

Swap Fees​

Swap fees are charged on every trade that occurs within OctoSwap's liquidity pools.

Legacy Pools: The fee is set at 0.30% per swap.

Concentrated Liquidity (CL) Pools: The fee depends on the selected fee tier for that pool (for example, 0.01%, 0.05%, 0.3%, or 1%).

Fee Distribution

Of the fees collected:

  • Two-thirds (2/3) are distributed to liquidity providers, rewarding them for supplying liquidity
  • One-third (1/3) goes to the protocol

All relevant fee information is clearly displayed before you confirm any swap or liquidity action.

Slippage​

Slippage refers to the difference between the expected price of your trade and the actual execution price. Slippage can occur due to rapid price movements, large trade sizes relative to pool liquidity, or sudden spikes in market volatility.

On OctoSwap, you can set your own slippage tolerance in the swap interface. If the price moves more than your chosen tolerance during the transaction, your trade will be automatically reverted—helping protect you from unexpected losses.

Price Impact​

Price impact describes how much your trade moves the market price of a token within a pool. Large trades in smaller or less liquid pools can result in a significant price impact, meaning you receive less favorable rates.

OctoSwap always displays an estimated price impact before you execute a swap, allowing you to make informed decisions.

Reducing Price Impact

To reduce price impact, consider:

  • Splitting larger trades into multiple smaller ones
  • Trading in pools with higher liquidity
  • Waiting for less volatile market conditions

Best Practices​

Important Reminders

Always check these details in the interface before confirming a transaction—especially when trading large amounts or using less liquid pools.

In summary, reviewing swap fees, setting a reasonable slippage tolerance, and understanding price impact will help you achieve better trading results and minimize risk on OctoSwap.