Fees & trade costs

Compare quoted output and minimum received separately

Compare the expected receiving amount and minimum output as separate economic measures rather than charging slippage tolerance as a fee.

Expected output describes the quote at the observed state. Minimum output describes a receiving constraint the transaction must satisfy. They belong in separate columns because one estimates the outcome and the other limits an accepted result.

Two rankings can disagree

Consider hypothetical exact-input alternatives for the same amount:

MeasureRoute ARoute B
Quoted output1,000 tokens998 tokens
Encoded minimum output990 tokens995 tokens
Separate cost in output-equivalent units2 tokens1 token

A has the better quoted net output: 998 versus 997. B has the higher output floor after the stated separate-cost estimates: 994 versus 988. Calling either simply “best” conceals which criterion was used.

Read the encoded amount

The minimum-output guard rejects an exact-input swap that would return less than the required amount. It does not promise a fill at the quoted amount, and it does not require execution at the minimum.

Use the actual amount shown in the transaction review rather than guessing it from a percentage. Interfaces and execution methods can differ in calculation conventions, rounding and which deductions the protection covers.

Separate token protection from total economic cost

The output floor may not cap a separate gas payment. If gas changes, the estimated net floor in the table changes too. An executed revert can also consume network fees without delivering the output.

For a fair comparison, record both guards using consistent output tokens and describe any different tolerances. A looser receiving constraint can make an option appear easier to execute, but it also permits a worse result. Treat that as a condition of the offer, not as a fee that is automatically paid.

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  1. Understanding Swaps on Uniswap

    Exact-input minimum output, exact-output maximum input, quote-size price impact and swap execution distinctions.

    https://developers.uniswap.org/docs/get-started/concepts/traders/swaps

Continue reading

Budget the cost of receiving a fixed token amount Measure negative slippage after a completed swap Where did the better-than-quoted output go?