> ## Documentation Index
> Fetch the complete documentation index at: https://docs.krokoswap.io/llms.txt
> Use this file to discover all available pages before exploring further.

# Fee Tiers

> Selectable fee levels for V3 pools

# Fee Tiers

V3 pools support four fee tiers, allowing the market to create pools optimized for different asset types.

## Available Tiers

| Fee Tier | Fee Rate | Tick Spacing | Best For                           |
| -------- | -------- | ------------ | ---------------------------------- |
| 0.01%    | 1 bps    | 1            | Stablecoin pairs (e.g., USDC/USDT) |
| 0.05%    | 5 bps    | 10           | Correlated assets                  |
| 0.3%     | 30 bps   | 60           | Most pairs (default)               |
| 1%       | 100 bps  | 200          | Exotic / long-tail pairs           |

<Note>
  **bps** = basis points. 1 bps = 0.01%.
</Note>

## Choosing a Fee Tier

The fee tier affects both the swap cost for traders and the revenue for LPs:

* **Lower fees** attract more trading volume but pay LPs less per trade
* **Higher fees** compensate LPs more per trade but may deter volume

### Guidelines

| Asset Type              | Recommended Tier |
| ----------------------- | ---------------- |
| Stablecoin ↔ Stablecoin | 0.01%            |
| Blue chip ↔ Stablecoin  | 0.05% or 0.3%    |
| Established tokens      | 0.3%             |
| New or volatile tokens  | 1%               |

## Tick Spacing

Each fee tier has a fixed **tick spacing** that determines the granularity of price points where liquidity can be added or removed.

* Lower tick spacing = more precise price ranges but higher gas costs
* Higher tick spacing = less precise ranges but lower gas costs

The tick spacing is directly tied to the fee tier and cannot be configured independently. See [Ticks and Ranges](/concepts/v3/ticks-and-ranges) for details.

## Multiple Pools Per Pair

The same token pair can have multiple V3 pools, one for each fee tier. The routing engine automatically selects the pool(s) with the best execution price for each swap.

For example, KAS/USDC might have:

* A 0.05% pool with deep liquidity for large trades
* A 0.3% pool with moderate liquidity
* A 1% pool for small speculative trades

Liquidity providers choose which pool(s) to provide liquidity to based on their strategy and risk tolerance.