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Five common fee mistakes

How trading fees become LP income.

1 / 6

MISTAKE 1 OF 6

“95% fee share means 95% APR.”

What actually happens95% describes how swap fees are split. It does not tell you the yearly return on your deposit.

Example: a fee-only pool earns $10 in swap fees.
Under the default split, all eligible LPs share $9.50; the protocol gets $0.50.

More detail

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.

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.

All five mistakes

“95% fee share means 95% APR.”

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

Example: a fee-only pool earns $10 in swap fees.
Under the default split, all eligible LPs share $9.50; the protocol gets $0.50.

“The pool’s fees are all mine.”

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

Example: $100 in fees is available to active LPs.
If your share stays at 10% throughout those trades, you earn $10.

“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.

Fee-only default: 95% of swap fees goes to LPs.
Gauged default: swap fees go to voters; eligible LPs receive token rewards.

“A tighter range always earns more.”

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

Example: a $90–$110 range is inactive when price reaches $115.
You keep fees earned earlier. New fees resume when trades use your range again.

“Fees earned are my total profit.”

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

Example: $970 in tokens + $12 in separate fees − $5 in costs = $977.
If you started with $1,000, that is a $23 loss, despite earning fees.

Robinhood revenue buys RAM

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

The fee-only default remains 95% LPs / 5% protocol; buybacks use the protocol portion.
Authorized execution sends RAM to the dead address without reducing Robinhood totalSupply.
Direct RAM input can skip the purchase. Buybacks guarantee neither price gains nor net deflation.

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Sources

Technical fee mechanics Concentrated liquidity Risk disclosures Robinhood BuybackModule · routing changed 14 Oct 2026 Robinhood BuybackModule · verified contract Robinhood RAM market buy · 15 Oct 2026Source checks: 2026-09-12 · 2026-09-16 · 2026-10-15

“95% fee share means 95% APR.”

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

Example: a fee-only pool earns $10 in swap fees.
Under the default split, all eligible LPs share $9.50; the protocol gets $0.50.

“The pool’s fees are all mine.”

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

Example: $100 in fees is available to active LPs.
If your share stays at 10% throughout those trades, you earn $10.

“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.

Fee-only default: 95% of swap fees goes to LPs.
Gauged default: swap fees go to voters; eligible LPs receive token rewards.

“A tighter range always earns more.”

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

Example: a $90–$110 range is inactive when price reaches $115.
You keep fees earned earlier. New fees resume when trades use your range again.

“Fees earned are my total profit.”

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

Example: $970 in tokens + $12 in separate fees − $5 in costs = $977.
If you started with $1,000, that is a $23 loss, despite earning fees.

Robinhood revenue buys RAM

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

The fee-only default remains 95% LPs / 5% protocol; buybacks use the protocol portion.
Authorized execution sends RAM to the dead address without reducing Robinhood totalSupply.
Direct RAM input can skip the purchase. Buybacks guarantee neither price gains nor net deflation.

Advanced Risk Check (optional)

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.

Sources · original review 2026-09-12; Robinhood buybacks reviewed 2026-10-15

Technical fee mechanics: https://tech.ramses.xyz/concepts/protocol/fees

Concentrated liquidity: https://www.ramses.xyz/docs/concentrated-liquidity

Risk disclosures: https://www.ramses.xyz/docs/disclaimers-and-legal

Robinhood BuybackModule · routing changed 14 Oct 2026: https://www.ramses.xyz/docs/buyback-module

Robinhood BuybackModule · verified contract: https://robin.etherscan.io/address/0x74f1e8be68ae7bf24bc387ee1a900d5bc23317a3#code

Robinhood RAM market buy · 15 Oct 2026: https://robin.etherscan.io/tx/0xdf0f9cd17c00d140969c3cf774ffffbad0ad1e3469c9e16dde697892eae440ca