Fees

Swap Fees

The initial swap fee is set to 0.5%. Swap fees are calculated as a percentage of the price of the NFT bought or sold by the traders. Fees are not automatically reinvested in positions and LPS need to be manually redeemed from the pool.

Royalty Fee

Midaswap fully complies with the on-chain royalty standard EIP2981.

• For NFT collections that have completed EIP2981, when users build liquidity pools through Midaswap, the protocol will automatically refer to the royalty fee rate and beneficiary address that are set on-chain for that collection, and built-in interfaces are provided for the creators to claim their royalties.

• For NFT collections that have not completed EIP2981, as the owner of the NFT asset contract, they can perform on-chain identity authentication and royalty registry through the Royalty Registry, and contact us via Discord to refresh on-chain royalty data.

Protocol Fees

Midaswap has a built-in agreement rate of 10% of the trading fee earned by LPs will be transferred to the Treasury of Midaswap. If the liquidity of the NFT bought by user is in limited order form, 100% of the trading fee will be transferred to the Treasury of Midaswap.

Example of fee calculation

Case 1 & 2

When a user buys a NFT at the price of 100 ETH, the amount of ETH the user needs to pay is $100 ETH * (1+ 0.005 + 0.005)= 101 ETH$. It is noticeable that some other protocols may calculate as $100 ETH * (1.005 * 1.005) = 101.0025ETH$.which increases the cost of user.

Case 3

When a user sells a NFT at the price of 100 ETH, the amount of ETH the user finally receives is $100ETH / (1+ 0.005 + 0.005) = 99.0099ETH$. It is noticeable that some other protocols may calculate $100 ETH * (1 - 0.005 - 0.005) = 99ETH$.which increases the cost of user.

We can see that Midaswap's fee calculation is designed to lower the cost of traders, so that we can attract more traders to come here.

The balance book of Midaswap in trading

Unit: ETH	Liquidity type	Amount the buyer needs to pay	Amount goes to the pool (owned by LP)	Amount directly goes to the LP	Amount directly goes to the protocol	Amount paid as royalty
Case 1	Unlimited	101	100	0.45	0.05	0.5
Case 2	Limited	101	0	100	0.5	0.5

Unit: ETH	Liquidity type	Amount the seller finally receives	Amount leaves from the pool	Amount directly goes to the LP	Amount directly goes to the protocol	Amount paid as royalty
Case 3	Unlimited	99.0099	100	0.4455	0.0495	0.4951