# Fees ## Swap Fees In EVO, swap fees are allocated proportionally to all active liquidity positions within range at the moment a trade occurs. When the current price moves outside a position’s specified range, that liquidity becomes inactive and stops earning fees. If the market price moves back into the range, the liquidity reactivates and resumes collecting fees. Unlike AMMs where fees are automatically reinvested back in the LP positions, EVO separates fee earnings from the pool’s liquidity. Collected fees must be claimed manually by the position owner whenever they choose to harvest their earnings. ## Pool Fee Tiers EVO supports multiple liquidity pools for each token pair, each configured with a distinct swap fee. When creating a pool, liquidity providers can select from predefined fee options such as 0.01%, 0.05%, 0.25%, and 1.00%. In traditional AMM designs, fragmenting liquidity across separate pools is impractical because it reduces the depth of each individual market, resulting in higher slippage for traders. However, concentrated liquidity in EVO decouples total liquidity from its distribution, meaning that even fragmented pools can maintain strong execution quality if liquidity is well-placed. By enabling fine-tuned control over price ranges and fees, EVO allows for more specialized pools tailored to different asset profiles—particularly those poorly served by a one-size-fits-all fee structure. ## Selecting the Appropriate Fee Tier We anticipate that certain types of assets will gravitate towards specific fee tiers, based on where the incentives for both swappers and liquidity providers come nearest to alignment. Stablecoins and other low-volatility assets will often be found in low-fee pools (e.g. 0.01%–0.05%), where LPs face minimal price exposure and traders seek near-parity execution. On the other hand, higher-risk or less frequently traded tokens are more likely to thrive in higher-fee pools (e.g. 0.25%–1.00%), where LPs are better compensated for the additional risk of impermanent loss and market volatility. --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://docs.evo.market/introduction/about-concentrated-liquidity/fees.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.