> For the complete documentation index, see [llms.txt](https://docs.pairity.fi/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.pairity.fi/protocol/fees.md). # Fees and quotes Pairity separates the fair value of an instrument from the costs of executing a trade and, where applicable, changing vault inventory. ## Current fee schedule | Component | Rate or rule | Purpose | | --------------- | ----------------------------------- | --------------------------------------------------------------- | | Trading fee | 1% for Call/Put, 0.1% for Base | Applied to the fair-value quote | | Inventory fee | 0.5% of positive inventory increase | Covers added Base, Call or Put inventory after route operations | | Conversion cost | Route-dependent | External V3 conversion cost, when a route needs it | Fees are denominated in the quote asset. ## Buy and sell ``` Buy = fair value + total fee Sell = fair value - total fee ``` Buy amounts are rounded up and sell amounts are rounded down. This prevents rounding from creating an unintended advantage for the caller. ## Inventory fee The inventory fee is based on positive inventory added by the route. It is calculated using the post-operation balances and the relevant Base, Call and Put marks. A route that only uses existing inventory can have a different fee profile from a route that mints a complete set or performs a conversion. ## Quote lifecycle The frontend first requests or calculates a quote, displays the route, fee and slippage information, and then submits the transaction. The router and Pair Vault validate the actual assets received and the selected route on-chain. A quote is not a reservation: another transaction can change the state before it is mined. Quotes can fail when the oracle is invalid or stale, the series is inactive or expired, inventory is insufficient, implicit AMM liquidity is insufficient, or the configured slippage and deadline checks are no longer satisfied. --- # Agent Instructions This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com. ## Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation by asking a question. Perform an HTTP GET request on the following URL with the `ask` and `goal` query parameters: ``` GET https://docs.pairity.fi/protocol/fees.md?ask=&goal= ``` `ask` is the immediate question: it should be specific, self-contained, and written in natural language. `goal` is what the user is ultimately trying to achieve, the reason they need the answer. Sharing it helps GitBook give you a better, more relevant answer. A goal is most helpful when it describes the outcome the user wants rather than restating the question. For example, with `ask=how do I create an API token`, a goal like `automate deployments from our CI pipeline` lets GitBook tailor the answer to that use case. 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.