Fees & Slippage
Trading fees and slippage are fundamental components of on-chain execution.
PananaSwap is designed to apply fees transparently and allow users to control slippage tolerance, ensuring that swap outcomes align with user expectations and market conditions.
Trading Fees
Trading fees on PananaSwap are applied at execution time and are determined by the wallet’s current VIP level.
Key characteristics of trading fees:
Applied per swap transaction
Deterministic and rule-based
Automatically adjusted based on VIP status
Visible within the transaction execution
Fees are not applied retroactively and do not change the quoted execution path.
VIP-Based Fee Application
PananaSwap uses a volume-based VIP system to determine applicable trading fees.
VIP status is evaluated per wallet
Fee reductions apply automatically after upgrades
No manual selection of fee tiers is required
Detailed VIP fee structures are documented separately in the VIP Program section.
What Fees Do Not Include
Trading fees on PananaSwap do not include:
Network gas fees
Miner or validator costs
External protocol fees applied by liquidity sources
Gas fees are determined by the underlying blockchain network and paid directly by the user.
Understanding Slippage
Slippage represents the difference between the expected price at submission and the actual execution price on-chain.
Slippage may occur due to:
Market price movement
Liquidity depth
Trade size relative to pool liquidity
Network latency
Slippage is not a platform fee.
Slippage Tolerance
Users define their slippage tolerance before executing a swap.
Transactions revert if slippage exceeds the defined tolerance
Lower tolerance reduces execution risk but may cause reverts
Higher tolerance increases execution probability but allows wider price movement
Selecting an appropriate slippage tolerance is the user’s responsibility.
Execution Reverts and Failed Transactions
A transaction may revert if:
Slippage exceeds the user-defined tolerance
Liquidity becomes insufficient
Network conditions change during execution
In such cases:
No swap is executed
No trading fee is charged
Network gas fees may still be incurred
Fee Transparency and Finality
Once a swap is confirmed on-chain:
Applied fees are final and irreversible
Execution outcomes reflect real market conditions
All values are recorded on-chain
PananaSwap does not adjust or refund fees after execution.
Best Practices
To reduce execution risk, users are encouraged to:
Monitor liquidity conditions
Use appropriate slippage tolerance
Consider network congestion and gas fees
Review transaction details before confirmation
Understanding fees and slippage helps ensure predictable and informed trading outcomes.
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