Maker Fees

Understanding how protocol fees affect execution is critical for makers pricing competitive quotes. The feePips parameter reduces the amountIn the maker receives from the taker, which means makers must factor the fee into their pricing model.

How `feePips` Affects Maker Pricing

The fee is deducted from amountIn (the taker’s input token). The maker receives amountIn - fee, while the taker receives the full quoted amountOut.


fee           = amountIn * feePips / 1_000_000
makerReceives = amountIn - fee

At the current feePips = 250 (2.5 bps / 0.025%), the fee on a 10,000 USDC input is just 2.5 USDC. Takers compare quotes by amountOut directly, since the fee does not reduce their output.

The protocol fee is deducted from amountIn, not from amountOut. The taker always receives the full amountOut quoted by the maker. The maker receives amountIn - fee. The fee goes to the protocol fee recipient.

Fee Deduction Mechanics

The settlement flow works as follows:

The taker submits the maker’s signed quote to the RFQSettlement contract.
The contract computes fee = amountIn * feePips / 1_000_000.
The contract transfers amountIn - fee from the taker to the maker.
The contract transfers fee from the taker to the fee recipient.
The contract transfers amountOut from the maker’s approved balance to the taker.

The maker receives slightly less than the full amountIn due to the fee. The taker receives exactly amountOut. From the maker’s perspective, inflow equals amountIn - fee.

Net Execution Amount

Makers should account for the fee when computing their effective spread:


amountIn       = 10,000 USDC
amountOut      = 500 HYPE
feePips        = 250
fee            = 10,000 * 250 / 1,000,000 = 2.5 USDC
makerReceives  = 10,000 - 2.5 = 9,997.5 USDC

The fee is small at 2.5 bps. On a $10,000 trade the maker loses $2.50 to the protocol — far less than a typical AMM swap fee.

Pricing Strategy Implications

When building a pricing engine, makers should:

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.
Price competitively on amountOut — Takers compare quotes by output amount. The fee does not reduce the taker’s output, so your quoted amountOut is exactly what the taker receives.
Account for fee in P&L — Your effective inflow per trade is amountIn * (1 - feePips / 1_000_000). At 250 pips this is 99.975% of amountIn.
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 quoted amountOut 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.

Fee Structure — Overview of all protocol fees
Taker Fees — How takers experience fees in the UI
Pricing Strategies — Building a competitive pricing model