What is a trading fee APR?

APR is expressed as a percentage that represents the actual yearly cost of funds over the term of a loan or income earned on an investment . This includes any fees or additional costs associated with the transaction but does not take compounding into account.

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How are Uniswap fees calculated?

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 .

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