Fees and Edges

Swaps

Currently, all swaps on the SKNK DEX are subject to a 0.3% fee which is passed on to the liquidity providers.

Games

LP Edge

The SKNK protocol employs an effective 1% house edge for liquidity providers. This edge is required to make the platform attractive for LPs to provide capital that is continuously exposed to game variance. The edge helps smooth variance over time, ensuring payouts remain fair while LPs still earn a sustainable return.

The edge for LPs is applied when calculating the output of a stake for a given chance.

Return to Player (RTP)

At the protocol level, SKNK is designed around a 99% return to player (RTP). In practical terms, that means the base ticketing logic retains a 1% edge before any game-specific economics are applied.

Games built on top of SKNK may apply their own additional fees, spreads, or reward mechanics. Because of that, the final RTP experienced by a player can vary by game even though the underlying protocol-level RTP is 99%.

Protocol Fee

In addition to the LP edge, the protocol takes a platform fee. This fee is calculated as a percentage of the pool edge, not the original stake. That keeps the player payout logic consistent while funding protocol operations. This is currently set to 10% of the pool edge, only paid out upon a ticket win.

Example

Assume a 1% pool edge and a 10% protocol fee on the edge, with a 50% win chance.

Item	Value
Stake	100
Chance	50%
Total payout (stake / chance)	200
Profit (payout - stake)	100
Pool edge (1% of payout)	2
Protocol fee (10% of edge)	0.2
LP edge retained (edge - fee)	1.8
Net profit (profit - edge - fee)	97.8
Net output (net profit + stake)	197.8