# Sliding Fee

{% hint style="info" %}
**Note for DEX Teams:**

This plugin helps distinguish between arbitrageurs and regular users, adjusting fees accordingly. It allows to significantly increase profitability compared to the classic fee mechanics, ranging from 2–10% per unit of invested liquidity by capturing more revenue from arbitrageurs while maintaining competitive fees for casual users.

Can be tuned per pool to strike a balance between user fairness and LP profitability. Customize it per pool using your parameters and make sure to reflect current logic in your frontend.

Available via **Plugins Marketplace**: <https://market.algebra.finance/plugin/sliding-fee/>
{% endhint %}

### User-Oriented Overview:

This fee logic adjusts the cost of your swap based on **market movement and your trade direction**:

* Swaps **in the direction of price momentum** (e.g. price rising, and you're buying) may have a **slightly higher fee**.
* Swaps **against the trend** could be **cheaper**.

This discourages exploitative arbitrage and rewards regular users who are not front-running the price. For liquidity providers, this means **higher returns**, as the system is designed to capture more value from arbitrage trades without penalizing most users.

> 📈 Fees are calculated based on recent trades and market shifts.


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# Agent Instructions: Querying This Documentation

If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question.

Perform an HTTP GET request on the current page URL with the `ask` query parameter:

```
GET https://docs.algebra.finance/algebra-integral-documentation/user-guide-template-for-dexes/concentrated-liquidity-and-modular-architecture-basics/fee-mechanics/sliding-fee.md?ask=<question>
```

The question should be specific, self-contained, and written in natural language.
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.