Ramses X
Educator Kit
Everyone

Five common fee mistakes

How trading fees become LP income.

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“95% fee share means 95% APR.”

95% describes how swap fees are split. It does not tell you the yearly return on your deposit.

Full notes

Fee share is not APR

In the documented fee-only default, LPs collectively receive 95% of swap fees. From $10 of swap fees, $9.50 goes to eligible LPs and $0.50 to the protocol. APR instead estimates income over a year relative to the capital supplied.

“The pool’s fees are all mine.”

Pool fees are shared. Your cut depends on how much active liquidity you provide when trades happen.

Full notes

Pool earnings are shared

After the pool allocates fees to LPs, each position receives its portion based on active liquidity used by trades. If $100 is available to LPs and your share stays at 10% throughout those trades, your fee income is $10. A larger deposit does not necessarily have the same share at every price.

“Every pool pays LPs swap fees.”

Pool types pay different people. Fee-only pools pay LPs swap fees; gauged pools reward eligible LPs with tokens instead.

Full notes

Pool rules decide who gets paid

The documented fee-only default allocates 95% of swap fees to LPs and 5% to the protocol. The gauged default sends swap fees to voters, while eligible LPs receive token rewards called emissions. These are different income streams. Individual pool settings can change the split.

“A tighter range always earns more.”

A tighter range concentrates your liquidity. But if price leaves it, your position stops earning new swap fees.

Full notes

Ranges trade concentration for coverage

Concentrating the same deposit into a narrower range can increase its share of active liquidity at those prices. Outside that range, it earns no new swap fees. A $90–$110 range is inactive at $115; previously earned fees remain. Fees can resume when swaps use the range again, provided liquidity remains in the position.

“Fees earned are my total profit.”

Your token value can rise or fall while you earn fees. Your total result also includes transaction costs.

Full notes

Fees are one part of the result

To calculate the dollar result, add the value of the tokens you still hold and any separately earned fees or rewards, then subtract costs and the starting amount. In this example, $970 + $12 − $5 − $1,000 = −$23. Fees already included in a token balance must not be added a second time.

Robinhood revenue buys RAM

Since October 14, 2026, all Robinhood protocol revenue routes to BuybackModule for market purchases of RAM. Sarcophagus is closed there.

Full notes

Robinhood protocol revenue → RAM buybacks

Since October 14, 2026, 100% of protocol revenue on Robinhood Chain is routed to BuybackModule; the Sarcophagus is closed there. Accumulated revenue funds taker-side market purchases of liquid RAM, which is sent to the dead address. This redirects protocol revenue, not all swap fees. The documented fee-only default remains 95% LPs / 5% protocol; the gauged default remains 100% of swap fees to voters, with configurable exceptions.

Advanced Risk Check
  • These examples are made up. Fee splits are documented defaults; check current pool settings for the actual split.
  • For concentrated liquidity, deposit divided by total pool value does not measure your share of active liquidity.
  • APR turns an income estimate into a yearly rate. It is not a promise of future earnings.
  • A wider range can stay active across more prices. Neither a wide nor a tight range guarantees higher earnings.
  • Count fees only once when calculating profit. Also compare your result with keeping the original tokens.

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