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Overview

402.cat has a multi-layered fee structure designed to support the platform, reward creators, and incentivize liquidity providers. All fees are transparent and predictable.

x402 Micropayment Fees

Every API endpoint has a micropayment cost in USDC:
x402 fees are separate from trading fees. They cover API usage and platform operations.

Trading Fees

Bonding Curve Phase

Buy Fee: 1% (100 basis points)
  • Added to your payment
  • Example: Buy 0.10Pay0.10 → Pay 0.101 total
  • Goes to platform revenue
Sell Fee: 1% (100 basis points)
  • Deducted from proceeds
  • Example: Sell for 0.10Receive0.10 → Receive 0.099
  • Goes to platform revenue
Fee Calculation:

Post-Graduation (Uniswap V4)

Hook Fee: ~0.3% (30 basis points)
  • Applied on every swap via Cat402Hook
  • Dynamic fee flag allows adjustment
  • Distributed 3 ways (see below)

Fee Distribution

Bonding Curve Phase

Platform

100% of trading fees go to the platform during bonding curve phaseUsed for:
  • Platform operations
  • Development
  • Marketing
  • Liquidity for graduated tokens

Post-Graduation Phase

Creator

33% of hook feesRewards token creators for successful graduation and building community

Platform

33% of hook feesSustains platform operations and development

LP Holders

33% of hook feesRewards liquidity providers for market-making
Example:
  • Swap generates $0.30 in fees
  • Creator: $0.10
  • Platform: $0.10
  • LPs: $0.10

Referral Fees

Referral Program

Earn 10% of ALL fees by referring users via the X-402-Referrer header. How It Works:
  1. Set Referrer Header: Add your wallet address to API requests
  2. User Pays Fees: When referred user trades, fees are generated
  3. You Earn 10%: Receive 10% of all fees from that transaction
Example:
  • User buys $0.20 worth of tokens
  • Trading fee: $0.002 (1%)
  • x402 fee: $0.20 (buy endpoint)
  • Total fees: $0.202
  • Your referral cut: $0.0202 (10%)

Claiming Referral Fees

Via CLI:
Via API:
Referral fees are claimable once they reach a minimum threshold (usually $1 USDC).

LP Fees (Post-Graduation)

Creator Fees

Token creators receive:
  • 20% of LP position (unlocked)
  • 33% of hook fees from all trades
  • Compounding: Fees can be reinvested
Claiming:

LP Holder Fees

Regular LPs (after adding liquidity) earn:
  • 33% of hook fees proportional to position size
  • Automatic accrual in Uniswap V4 position
  • Claimable via Uniswap V4 interface

Gas Fees

Base Network Fees

All transactions require ETH for gas: Typical Costs (Base L2):
Base is an L2, so gas fees are very low compared to Ethereum mainnet.

Fee Comparison

Total Cost Breakdown

Creating a Token:
Buying $0.20 (testnet):
Selling 50% position:

Post-Graduation Trading

Swap on Uniswap V4:

Fee Optimization Tips

  • Buy/sell in larger amounts to reduce relative x402 cost
  • Example: One 0.20buyvsfour0.20 buy vs four 0.05 buys saves 3× x402 fees
  • Always include X-402-Referrer header when building integrations
  • Earn 10% back on all referred user fees
  • Compounds quickly with volume
  • Trade during low network congestion for lower gas
  • Base gas fees are generally stable and low
  • Use --gas-price flag to set custom gas price
  • Wait for graduation if planning large trades
  • V4 has deeper liquidity for better prices
  • Hook fees (0.3%) < bonding curve fees (1%) on large amounts

Fee Transparency

On-Chain Verification

All fees are verifiable on-chain: Bonding Curve:
  • Check transaction logs for fee amounts
  • Verify via Base block explorer
Uniswap V4:
  • Hook fees visible in swap events
  • LP fee claims verifiable on-chain

API Transparency

All endpoints return fee breakdowns:

Fee Roadmap

Future Enhancements

  • Tiered Fees: Lower fees for high-volume traders
  • Fee Tokens: Pay fees in CAT (platform token) for discounts
  • LP Incentives: Additional rewards for early LPs
  • Dynamic Hook Fees: Adjust based on volatility
All fee changes will be announced in advance and require community discussion.

Next Steps

x402 Protocol

Learn about micropayment protocol

Bonding Curve

Understand trading mechanics

Claim Fees

API for claiming LP and referral fees

API Reference

Complete API documentation
All fees are designed to align incentives: creators are rewarded for success, platform is sustainable, and LPs are compensated for providing liquidity.