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FeesMaker Fees

Maker Fees

Understanding how protocol fees affect execution is critical for makers pricing competitive quotes. The feePips parameter directly reduces the output amount a taker receives, which means makers must factor the fee into their pricing model to ensure their quotes remain attractive after the deduction.

How feePips Affects Maker Pricing

When a maker submits a signed quote with a specific amountOut, the taker does not receive that full amount. The settlement contract deducts feePips from amountOut before transferring tokens to the taker.

takerReceives = amountOut - (amountOut * feePips / 10000)

This means the effective rate the taker experiences is worse than the raw amountOut the maker quotes. A maker who ignores the fee deduction will appear less competitive than they intend, because takers compare net received amounts, not gross quotes.

The protocol fee is deducted from amountOut, not from the maker’s received amountIn. The maker always receives the full amountIn specified in the signed quote. Only the taker’s output is reduced.

Fee Deduction Mechanics

The settlement flow works as follows:

  1. The taker submits the maker’s signed quote to the RFQSettlement contract.
  2. The contract transfers amountIn from the taker to the maker (full amount, no deduction).
  3. The contract computes fee = amountOut * feePips / 10000.
  4. The contract transfers amountOut - fee from the maker’s approved balance to the taker.
  5. The fee amount is retained by the settlement contract (protocol treasury).

The maker always sends the full amountOut from their balance. The fee is carved out of that amount before it reaches the taker. From the maker’s accounting perspective, the total outflow equals amountOut exactly.

Net Execution Amount

Makers should compute the taker’s net received amount when evaluating competitiveness:

grossAmountOut = 500 HYPE
feePips        = 250
fee            = 500 * 250 / 10000 = 12.5 HYPE
netToTaker     = 500 - 12.5 = 487.5 HYPE

If a competing maker quotes amountOut = 510 HYPE:

fee        = 510 * 250 / 10000 = 12.75 HYPE
netToTaker = 510 - 12.75 = 497.25 HYPE

The taker will select the quote that gives them the highest netToTaker, which in this case is 497.25 HYPE.

Pricing Strategy Implications

When building a pricing engine, makers should:

  1. Read feePips from the contract — Do not hardcode the fee. Query RFQSettlement.feePips() on startup and periodically thereafter, in case the admin adjusts the value.
  2. Price to the net rate — Compute the effective price the taker will receive after fees, and benchmark that against AMM and order book alternatives that the taker can see in the venue comparison panel.
  3. Account for fee in spread calculation — If your target spread above fair value is 20 bps, and the protocol fee is 250 bps, the taker’s all-in cost is 270 bps above fair value from your quote. Adjust accordingly to remain competitive.
  4. Monitor venue comparison — The UI shows takers how your quote compares to DEX routes and HyperCore. Those venues have their own fee structures (typically 30 bps for Uniswap-style AMMs). Your net quote needs to beat or match those alternatives to win fills.

If feePips changes, all previously signed but unfilled quotes will be settled at the new fee rate. Makers should monitor for fee changes and consider incrementing their nonce to invalidate outstanding quotes if a fee change makes their existing quotes unprofitable.

Options: Keeper Fees for Makers

For options trades, the fee model is different. There is no feePips deduction on the premium payment. Instead, the keeper fee is deducted from the settlement payout when an ITM option is settled. Makers (who are the option buyers in V1) should factor the potential keeper fee into their pricing of the option premium.

See Keeper Fees (Options) for the full formula and impact on maker P&L.

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Fee StructureTaker Fees