What is a liquidity provider (LP) fee?#
Last modified: August 10, 2026
A liquidity provider (LP) fee is applied to every swap that uses the CenturionDEX Protocol. The fee is taken from the input token.
LP fees are distributed to liquidity providers as a reward for supplying tokens to a pool. They are paid proportionally to every provider with an active position. A provider whose position is outside the price range at that moment does not earn fees.
Fees collected are split between liquidity providers and the CenturionDEX Protocol fee, as shown below:
| Version | Fee tier | LP fee | CenturionDEX Protocol fee |
|---|---|---|---|
| v2 | All pools | 0.25% | 0.05% |
| v3 | 0.01% | 0.0075% | 0.0025% |
| v3 | 0.05% | 0.0375% | 0.0125% |
| v3 | 0.30% | 0.25% | 0.05% |
| v3 | 1.00% | 0.8334% | 0.1666% |
Note: only some v3 pools have a CenturionDEX Protocol fee enabled.