How You Earn Trading Fees

Where Fees Come From

Someone swaps ETH for USDC on Uniswap. They pay a small fee on that trade. That fee goes to people who provided liquidity. People like you.

This is the core of how you earn. Traders pay fees. Liquidity providers collect them.

Fee Tiers

Different pools charge different fees. The fee is a percentage of each trade.

• 0.01% for very stable pairs (like USDC/USDT)
• 0.05% for popular pairs with tight prices
• 0.30% for most pairs (like ETH/USDC)
• 1.00% for exotic or volatile pairs

Higher fee tiers earn more per trade. But they also get fewer trades. The pool's total volume matters more than the fee rate alone.

Your Share of the Pie

Imagine a pool has $1 million in active liquidity. You provided $10,000. That is 1% of the pool. You earn 1% of all fees while the price is in your range.

With concentrated liquidity, your effective share is bigger. Your $10,000 focused in a narrow range acts like $100,000 or more in a full-range pool. Bigger share, bigger earnings.

In Range vs Out of Range

You only earn fees when the price is inside your range. This is why range management matters.

Price inside your range? You are earning. Price outside your range? You earn nothing until it comes back or Snuggle rebalances.

Snuggle keeps your position in range as much as possible. More time in range means more fees for you.

Collecting Your Fees

Fees build up in your position over time. To move them to your wallet, click Harvest on your position page.

Gas on Base costs under $0.01. There is no reason to wait. Harvest whenever you want.

Snuggle charges a 15% performance fee on your earnings. If your position earned $100 in fees, you keep $85. Snuggle takes $15. If your position earned nothing, you pay nothing. You only pay when you profit.

What You Learned

• Every trade in your pool generates a fee that goes to liquidity providers
• Your share depends on how much of the active liquidity you provide
• Snuggle charges 15% of earnings only. You keep 85%.