Each pool has a configured swap fee in basis points. 20 bps equals 0.20%. The factory supports a configurable protocol share of collected swap fees; the remainder benefits liquidity providers through reserves.
Liquidity provision can lose value because of:
- impermanent loss as relative token prices move;
- malicious, upgradeable, taxed, rebasing, or non-standard tokens;
- oracle manipulation and low-liquidity price distortion;
- smart-contract defects;
- bridge, RPC, wallet, and chain failures;
- loss of token value or inability to sell.
Fee income is not guaranteed to offset losses. KovaSwap contracts are not independently audited.
