> For the complete documentation index, see [llms.txt](https://cetus-1.gitbook.io/cetus-docs/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://cetus-1.gitbook.io/cetus-docs/dlmm/dynamic-fee.md).

# Dynamic Fee

In Cetus DLMM, fees are designed to be responsive to market conditions rather than fixed, ensuring fair compensation for liquidity providers and protection against extreme volatility or manipulative trading.

Unlike traditional AMMs with a single constant fee rate, DLMM uses a **dynamic fee model**, where the **total fee for a swap** consists of:

* **Base Fee** – a fixed portion that applies to every trade, providing predictable revenue for LPs.
* **Variable Fee** – adjusts in real time based on market volatility, trading activity, and price movement across bins.

This structure achieves several goals:

* Incentivizes liquidity provision where it’s needed most.
* Protects LPs from sudden large trades that could deplete a bin quickly.
* Maintains efficient and stable trading even during periods of high volatility.

{% content-ref url="/pages/3qU3pyOnVIA2LpihJ3Cy" %}
[Fee Structure](/cetus-docs/dlmm/dynamic-fee/fee-structure.md)
{% endcontent-ref %}

{% content-ref url="/pages/Ao1ZrBzTNsHYvAVHwYny" %}
[Volatility Related](/cetus-docs/dlmm/dynamic-fee/volatility-related.md)
{% endcontent-ref %}


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