What Are Fees on Kuru?
On Kuru, fees work differently than on traditional AMMs. Instead of taking a percentage from each trade, your fee is the spread between your buy and sell orders.
When you set a fee tier (like 0.05% or 0.30%), you’re setting how far apart your bid and ask orders are spaced.
How You Earn Fees
Let’s use a simple example with MON:
Initial Setup:
- Current MON price: $0.025
- You choose a fee tier
- Your position places buy and sell orders with a spread
First Flip:
- When a trader matches your buy order at $0.025, you’re buying MON
- Your order automatically flips to a sell order at $0.026
- When that order flips and sells at $0.026 you earn the $0.001 spread
- You earned: $0.001 per MON (the difference between buy and sell)
Second Flip (with auto-compounded fees):
- Your fees from the first flip are automatically added to your position
- Now your buy order is slightly larger (because of compounded fees)
- When this order fills and flips again, you earn on a bigger position size
- This cycle continues, with your position growing each time
The key insight: Every flip cycle earns you the spread. More volume on your position leads to higher fees earned because you’re flipping more frequently.
Understanding Fee Tiers
When you choose a fee tier, you’re making a trade-off between competitiveness and profitability per trade.
Lower Fee Tiers (e.g., 0.05%)
What it means:
- Tighter spread between your buy and sell orders
- More orders placed within your price range
- Higher minimum deposit required (more orders = higher minimum)
Best for:
- Smaller price ranges
- Less volatile assets
- Stable assets (stablecoins, LST/native pairs)
- High volume markets where frequent fills compensate for smaller spreads
Example: On a USDC/USDT pair with minimal price movement, a 0.05% fee lets you place many tight orders that flip frequently, earning consistent small profits.
Higher Fee Tiers (e.g., 0.30%)
What it means:
- Wider spread between your buy and sell orders
- Fewer orders placed within your price range
- Lower minimum deposit required (fewer orders = lower minimum)
Best for:
- Larger price ranges
- Volatile assets
- Markets where you want bigger profit per flip (even if flips are less frequent)
Example: On a volatile MON/USDC pair, a 0.30% fee means you earn more per flip, and you need fewer orders to cover a wider range.
Fees Auto-Compound
One of the best features on Kuru: your earned fees are automatically added back into your position.
You don’t need to claim fees separately or manually reinvest them. Every time you earn the spread, it increases the size of your orders for the next flip.
This creates a compounding effect:
- Flip 1: Earn $0.14
- Flip 2: Your position is now larger by 0.14,soyouearn0.14+
- Flip 3: Your position is even larger, earn even more
- And so on…
Over time, your position grows automatically as you continue earning fees.
How We Recommend Fee Tiers
We automatically recommend fee tiers based on:
- Market volatility - Stable pairs get lower fees, volatile pairs get higher fees
- Typical price range - Wider ranges benefit from higher fees
- Trading volume - High volume markets can support tighter spreads
For most users, sticking with our recommended fee tier works well. But you can always choose a custom fee if you have a specific strategy in mind.
