2.3 Fees

ChopSui implements a competitive swap fee structure of 0.1% on its platform. This fee is applied when users execute token swaps within the ecosystem. The low swap fee is designed to provide users with cost-effective and efficient trading opportunities while promoting liquidity and participation within the ChopSui ecosystem.

To illustrate how the 0.1% swap fee could work, let's consider the following mathematical example:

Assume a user wants to swap 1,000 Token X for Token Y on ChopSui, and the current market price for Token X is $1.00 per token. Here's how the swap fee calculation would work:

1. Token X Quantity: 1,000 tokens

2. Token X Price: $1.00 per token

3. Swap Fee: 0.1% (0.001)

First, we calculate the value of the swap before the fee is applied: Token X Value = Token X Quantity * Token X Price Token X Value = 1,000 tokens * $1.00/token Token X Value = $1,000

Next, we calculate the swap fee by multiplying the Token X Value by the swap fee percentage: Swap Fee = Token X Value * Swap Fee Swap Fee = $1,000 * 0.1% Swap Fee = $1.00

So, in this example, the swap fee for the transaction would be $1.00. The user would receive the desired amount of Token Y, minus the swap fee, in exchange for their Token X.

It's important to note that this is a simplified example and does not take into account any other potential fees or slippage that may occur during the swap. The actual fees and swap calculations may vary based on market conditions, liquidity, and the specific mechanisms implemented by ChopSui.

By setting the swap fee at 0.1%, ChopSui aims to provide users with a cost-effective trading experience while generating revenue to support the platform's operations and ongoing development.