> ## Documentation Index
> Fetch the complete documentation index at: https://docs.binibit.com/llms.txt
> Use this file to discover all available pages before exploring further.
# Fees
> 1.00% swap fee split into LP, burn, and referrer (50 / 25 / 25 BPS).
See Tokenomics → BINI Sinks for how the burn portion contributes to deflation.
## The split
Every swap on BaiDEX charges a **1.00% total fee** (100 basis points), split three ways:
```
TOTAL_FEE_BPS = 100 (1.00%)
LP_REWARD_BPS = 50 (0.50%)
BURN_BPS = 25 (0.25%)
REFERRER_BPS = 25 (0.25%)
```
```
Total swap fee: 1.00% (100 BPS)
├── 0.50% LP providers (50 BPS)
├── 0.25% Burned permanently (25 BPS) — deflationary
└── 0.25% Referrer / treasury (25 BPS)
```
| Slice | Receiver | Burns? |
| -------------- | ----------------------------- | ------- |
| 0.50% (50 BPS) | LP providers in the pool | No |
| 0.25% (25 BPS) | Burn address | **Yes** |
| 0.25% (25 BPS) | Referrer (if any) or treasury | No |
## How it works in practice
When you swap on BaiDEX:
1. Router intercepts the trade
2. Computes fee = 1.00% of input amount
3. Allocates fee to LPs, burn address, and referrer/treasury per the split
4. Executes the underlying V3 swap with the remaining 99.00%
LPs see the 0.50% portion as their realized fee. The 0.50% they "miss" vs Uniswap V3 is going to burn + referrer.
## Burn slice impact
The 0.25% burn is **permanent** — every swap removes BINI (or wBINI / USBI / Agent Token, depending on input) from circulation forever.
For wBINI swaps, this is a direct BINI sink (sink #3 in [BINI Sinks](/tokenomics/bini-sinks)). For other input assets, the burn affects that asset's circulating supply.
### Daily burn projections (wBINI)
If wBINI/USBI volume is \$V/day:
```
Daily wBINI burn (in $) = V × 0.0025
Daily wBINI burn (in BINI at $0.12 ref) = V × 0.0025 / $0.12
```
| Daily volume (wBINI) | Daily burn (\$) | Daily burn (BINI) |
| -------------------: | --------------: | ----------------: |
| \$100K | \$250 | 2,083 |
| \$1M | \$2,500 | 20,833 |
| \$10M | \$25,000 | 208,333 |
| \$100M | \$250,000 | 2,083,333 |
At \$10M/day wBINI volume, that's \~76M BINI burned per year — comparable to the Year 4 emission rate.
## Referrer slice
The 0.25% referrer share goes to:
* The user who referred the trader (if applicable), OR
* The platform treasury (if no referrer)
Referrer payouts are credited per-trade. The referral system itself is on-chain (referrer address is encoded in the swap call).
## LP slice mechanics
The 0.50% LP fee accrues to LPs proportional to their share of the in-range liquidity at the moment of the swap. Standard V3 semantics:
* Fees accumulate per position
* LPs collect fees by calling `collect()` on their position NFT
* Out-of-range LPs earn nothing during periods their range is bypassed
## Why 1.00% total?
The 1.00% rate is calibrated for:
* **Sustainability of burn**: 0.25% is enough to materially shrink supply at moderate volume
* **Competitive LP returns**: 0.50% to LPs is comparable to Uniswap's 0.30% tier on volatile pairs (with the trade-off of higher slippage protection from agents)
* **Functional referrer mechanic**: 0.25% gives referrers a non-trivial commission
Lower total fees would reduce the burn rate. Higher total fees would deter swap volume.
## Comparison
| | Uniswap V3 | BaiDEX |
| -------------- | ------------------ | ------------------------ |
| Lowest tier | 0.05% | n/a |
| Stable tier | 0.30% (most pools) | 1.00% |
| Volatile tier | 1.00% | 1.00% (single tier) |
| Where fee goes | 100% to LPs | 50 LP / 25 burn / 25 ref |
| Burn? | No | Yes (0.25%) |
## Related
Where the fee router fits
The burn portion
Where fees accrue
How fees compound for Agent Token holders