> For the complete documentation index, see [llms.txt](https://docs.cabbageswap.com/cabbageswap/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.cabbageswap.com/cabbageswap/features/exchange/fees.md).

# Fees

There is a 0.30% fee for swapping tokens. Break it down into:

* **0.25% fee is split by liquidity providers proportional to their contribution to liquidity reserves.** 

Swapping fees are instantly added to liquidity reserves, effectively raising the value of liquidity tokens. This acts as a payout to all liquidity providers in proportion to their pool share. To collect fees, liquidity tokens are burned to remove a proportional share of the underlying reserves.

Since fees are added to liquidity pools, the invariant increases at the end of every trade. Within a single transaction, the invariant represents `token0_pool / token1_pool` at the end of the previous transaction.

* **0.05% for the protocol fee.**

A protocol-wide charge of 0.05% per trade will take effect. This represents ⅙th (16.6̅%) of the 0.30% fee

This amount would not affect the fee paid by traders, but would affect the amount received by liquidity providers.

Protocol fee will be received at this wallet address: ....