Glossary

LP fee

Also written or said as: lp fees, liquidity provider fee, pool fee, swap fee

The part of each swap's fee that goes to the liquidity in the pool, not the whole fee you pay.

Every trade in an AMM pool pays one total fee, and that fee is split. The LP fee is the share that goes to the pool's liquidity; the rest can go to the platform and to the coin's creator. On a graduated pump.fun coin's PumpSwap pool, the LP fee is 0.02% of a 1.25% total under a 420 SOL market cap and 0.20% above it, as of October 2026. It stays in the pool as extra liquidity, because pump.fun burns the LP tokens when a coin graduates. On many other pools, such as Raydium's, most of the fee is paid to whoever provided the liquidity. It is one layer of the fee stack on every buy and sell.