Fees

Swap Fees

A swap fee is charged on every trade and accrues to the LPs whose liquidity is active at the time of the swap. Fees are distributed pro-rata: the more liquidity you provide in the active price range, the larger your share.

In Uniswap v2, every pool charges a flat 0.30% fee that is automatically added to pool reserves. In v3 and v4, fees are collected separately and must be manually redeemed by the position owner.

Key difference: in v2, fees compound automatically because they increase k (the constant product invariant). In v3 and v4, fees accumulate as claimable balances tied to each position.

Pool Fee Tiers

Uniswap v2 has a single fee: 0.30% on every pool.

Uniswap v3 introduced fee tiers, allowing multiple pools for the same token pair, each with a different fee. The standard v3 tiers are 0.05%, 0.30%, and 1%. Additional fee tiers can be enabled by UNI governance.

Uniswap v4 removes fixed tiers entirely. Pool creators can set any fee from 0% to 100% in 0.0001% increments (hundredths of a bip), and pools can use dynamic fees that adjust in real time through hooks.

In-Range Liquidity and Fee Accrual

In v3 and v4, LPs choose a price range for their position. Only in-range liquidity, positions whose range spans both sides of the current spot price, earns fees. If the price moves outside a position's range, that position stops accruing fees until the price re-enters.

This means LP fee income depends on two factors: how much liquidity you provide, and how well your chosen range tracks the market price.

Protocol Fees

Protocol fees are a portion of swap fees directed to the protocol rather than to LPs. They are distinct from the swap fee that accrues to liquidity providers.

With the passage of the UNIfication governance proposal in December 2025, protocol fees are now active on all v2 pools and select v3 pools. v4 fee adapter flows are part of the broader protocol-fees architecture and can be enabled through governance. Collected fees accumulate in onchain collection contracts. Independent searchers can claim these assets by burning a required amount of UNI tokens, creating an economic incentive that converts protocol revenue into UNI burns.

At launch, protocol fees are set to approximately 1/6 of the swap fee on enabled pools. These values are governance-configurable and may change over time.

For v2, the protocol fee rate is fixed in the pair contracts at 1/6 of the swap fee (0.05% of the 0.30% total). Protocol fees are enabled or disabled globally by setting the feeTo address on the v2 factory through governance. A full list of v3 pools included in the initial rollout is available here.

For technical details on how protocol fees are collected and converted, see the protocol fee contracts.

Dynamic Fees (v4)

Uniswap v4 supports dynamic fees: swap fees that adjust based on market conditions, implemented through hooks. Unlike the static tiers in v3, dynamic fees can change per swap or on a schedule (per block, daily, weekly, etc.).

Dynamic fees are set at pool creation and managed by the hook contract attached to that pool. Two update methods are available: calling updateDynamicLPFee on the PoolManager, or returning a fee override from the beforeSwap hook.

Dynamic fees are distinct from protocol fees and hook fees. All three can coexist on the same pool.

Hook Fees (v4)

Hook fees are custom fees implemented entirely within a hook contract. They are separate from swap fees and protocol fees and don't interfere with the core fee structure.

Hook developers can use hook fees to monetize their hooks, redistribute value, or implement use-case-specific pricing. Hook fees are typically applied in beforeSwap using the BeforeSwapDelta mechanism.

For implementation details, see custom accounting.