Fees and APR

#What Wave charges

5% of the trading fees your wave earns. That's the whole fee schedule.

• Taken when fees are collected, whether you collect or close.
• Calculated on what the contract actually receives, so never more than 5% of real fees.
• Nothing on deposits, withdrawals or principal.
• If your wave earns nothing, Wave earns nothing.
• Every card shows the gross fees and what you'll receive.

#Where the fees come from

• Each bin is a Uniswap position.
• When a trade passes through a bin's range, the trader pays the pool's fee tier.
• It's shared among everyone providing liquidity in that range, in proportion to how much.
• A narrow bin at the current price holds a big share of the liquidity there, so it earns a big share of the fees.
• Bins the price isn't in earn nothing until it comes back.

#Reading the APR column

Est. APR = fees the whole pool earned over the selected window, annualised, divided by the pool's liquidity.

Read it with this in mind:

• It annualises the selected window. One busy hour × a year is a huge number. Use 24h.
• It's for the whole pool. A concentrated wave in range earns a multiple. Out of range earns zero.
• On v4 pools with a hook that takes a share of swaps, that share comes out first. The figure runs high.

#How Wave measures fees

• v3: the pool's fee tier × traded volume.
• v4: every swap reports the fee it actually paid; Wave adds them up. That's why dynamic-fee pools still show a real number.