> For the complete documentation index, see [llms.txt](https://frostyart.gitbook.io/frosty/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://frostyart.gitbook.io/frosty/fees-or-swaping.md).

# Fees | Swaping

### Liquidity provider fees

There is a **0.2%** fee for swapping tokens. **This fee is split by liquidity providers proportional to their contribution to liquidity reserves.**

Swapping fees are immediately deposited into liquidity reserves. This increases the value of liquidity tokens, functioning as a payout to all liquidity providers proportional to their share of the pool. Fees are collected by burning liquidity tokens to remove a proportional share of the underlying reserves.

Since fees are added to liquidity pools, the invariant increases at the end of every trade. Within a single transaction, the invariant represents `token0_pool / token1_pool` at the end of the previous transaction.
