# Saros DLMM Fees: Base Fee, Variable Fee & Protocol Fee

### ❓ What are the different types of fees on Saros DLMM?

Saros DLMM uses a **dynamic fee model** that includes:

1. **Base Fee** – A fixed fee applied to every swap.
2. **Variable Fee** – A dynamic fee that adjusts based on market conditions.
3. **Protocol Fee** – A portion of the total **trading fees generated** that supports the long-term development and stability of the protocol. 

***

### ❓ What is the **Base Fee**?

The **Base Fee** is the minimum fee charged for each swap on Saros DLMM liquidity pools.

* It’s predefined and usually consistent across most trading pairs.
* It ensures a consistent return for liquidity providers.

***

### ❓ What is the **Variable Fee**?

The **Variable Fee** is a **flexible fee component** that adjusts based on:

* Market **volatility**
* **Imbalance in liquidity**
* The risk level of the pool

It’s designed to protect LPs by discouraging harmful arbitrage during periods of rapid price movement.

Together, **Base Fee + Variable Fee = Total Trading Fee** per swap.

***

### ❓ What is the **Protocol Fee**?

The **Protocol Fee** is a defined share of the total trading fee set aside to support the ecosystem’s sustainability, infrastructure, and operations.

* The standard configuration allocates **20% of the total trading fee** to this purpose.
* The remaining **80%** is distributed to liquidity providers who supply assets to the pool.

***Example**:*\
If a pair on Saros DLMM has $1M in trading volume and generates $10,000 in total fees (from base + variable):

* **$8,000** (80%) goes to liquidity providers
* **$2,000** (20%) goes to Saros protocol


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