# Overview

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Seacows is an *automated liquidity protocol* powered by a [constant product formula](https://seacows.gitbook.io/seacows-amm-docs/technical-reference/broken-reference) and implemented in a system of non-upgradeable smart contracts on the [Ethereum](https://ethereum.org/) blockchain. It obviates the need for trusted intermediaries, prioritising **decentralisation**, **censorship resistance**, and **security**.

All the fee are with respect to the [`PERCENTAGE_PRECISION`](https://seacows.gitbook.io/seacows-amm-docs/core/seacowserc721tradepair/seacowspairmetadata#percentage_precision).&#x20;

## Fee Structure

### Swap Fee

There are 2 fee tiers:

* 0.5%. See [POINT\_FIVE\_PERCENT](https://seacows.gitbook.io/seacows-amm-docs/core/seacowserc721tradepair/seacowspairmetadata#point_five_percent)
* 1%. See [ONE\_PERCENT](https://seacows.gitbook.io/seacows-amm-docs/core/seacowserc721tradepair/seacowspairmetadata#one_percent)

The fee tier is determined when it was created. The swap fee accumulates in the Pair but will not be considered as part of the liquidity. To collect swap fee, please refer to [Collect Swap Fee](https://seacows.gitbook.io/seacows-amm-docs/technical-reference/core/seacowserc721tradepair/seacowsrewarder).

### Protocol Fee

Protocol fee is the fee that will be collected every swap and transferred to the `feeTo` address specified in the [SeacowsPositionManager](https://seacows.gitbook.io/seacows-amm-docs/technical-reference/core/seacowspositionmanager).&#x20;

* Max Protocol Fee = 10%
* Default Protocol Fee = 0.3%

The protocol fee can be configured by Royalty Fee Manager. See royaltyFeeManager.

The max protocol fee is a constant in the pair contract. See [MAX\_PROTOCOL\_FEE\_PERCENT](https://seacows.gitbook.io/seacows-amm-docs/core/seacowserc721tradepair/seacowspairmetadata#max_protocol_fee_percent).

### Royalty Fee
