# Fee Tiers

Uniswap v2 fixates on a 0.3% fees for each pool, irrespective of its characteristics. Some pools may be highly volatile, experiencing frequent price fluctuations, whereas some may be relatively stable. Some pools may have low liquidity, and LPs might find it favourable to provide liquidity to some pools over others.

Keeping these factors in perspective, we introduce the following fee tiers to have customizable fees for each pool.

* **Tier 1:** For highly volatile pools
* **Tier 2:** For pools with medium to high volatility
* **Tier 3:** For pools with medium volatility (Also the default fee for each pool)
* **Tier 4:** For pools with low to medium volatility
* **Tier 5:** For pools with low volatility

This way we can ensure that liquidity providers are correctly compensated for their positions.

Initially, all supported pools will have a default fee tier 3 (0.3% on each swap), however, with governance, proposals can be created and voted on to change fee tiers for different pools.
