How You Earn Trading Fees

Where Fees Come From

Every time someone trades on a DEX, they pay a fee. This fee goes to liquidity providers.

For example, in a WETH/USDC pool with a 0.30% fee:

• A trader swaps $10,000 of USDC for WETH
• The pool charges $30 (0.30% of $10,000)
• That $30 goes to the liquidity providers

Your share depends on how much of the pool's liquidity is yours. If you provide 1% of the active liquidity, you get 1% of the fees.

Concentrated Liquidity Earns More

With concentrated liquidity, your capital is focused in a smaller range. This means you control a larger share of the liquidity in that range.

A $1,000 concentrated position might control the same share as a $50,000 full-range position. Same fees, much less capital.

This is why MaxFi positions earn so much more than traditional LP.

When You Earn

You earn fees only when the price is inside your range. If the price moves out, you stop earning until MaxFi rebalances.

This is why range width and rebalance delay matter. They determine how much time your position spends earning.

Fee Accumulation

Fees build up in your position in real time. You can see them on your positions page at maxfi.tech/positions.

When you harvest, the earned fees move to your wallet. MaxFi takes its 15% cut during the harvest. You keep 85%.

Harvesting on Base costs less than a penny. Harvest as often as you like.

What Drives Fee Income

Three factors determine how much you earn:

1. Trading volume: More trades = more fees
2. Your position size: Bigger position = bigger share of fees
3. Time in range: More time earning = more fees collected

MaxFi optimizes factor 3 by keeping your position in range with smart rebalancing.

What You Learned

• You earn a share of every trade that happens inside your price range
• Fees accumulate in real time and can be harvested any time
• MaxFi takes 15% of earnings only. You keep 85%.