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Fees and the arb recapture split

How Hookr is paid on a new pool: its share of block fees, integrators, and how every arb recapture splits.

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Hookr is paid two ways on a new pool, and the two never mix: a share of the block fees, and a cut of every arb recapture. The base LP fee goes to the pool's LPs in full.

Block fees

Hookr takes the pool's protocol share of the Snipe tax, the dynamic fee, LP Rewards and Auto Burn. The rest goes to the pool's LPs, or for Auto Burn is burned. The creator picks the share at launch, from 20% to 50%, and the pool keeps it for good.

Per 1 ETH of block feesLPs, or the burnHookrIntegrator
80/20, no integrator0.8 ETH0.2 ETHNone
80/20, integrator at the default rate0.8 ETH0.1 ETH0.1 ETH
70/30, no integrator0.7 ETH0.3 ETHNone
70/30, integrator at the default rate0.7 ETH0.15 ETH0.15 ETH

Integrators

A launch can name the app it goes through as the pool's integrator, if the treasury lists that app. The list gives each integrator a rate of Hookr's share, up to 50%, with 50% as the default rate. The rate is fixed with the pool, and the trader pays the same either way. It applies to Hookr's share of block fees and to the Hookr minimum, never to the arb recapture cut.

The share floor

The floor is the larger of two: the release's own minimum, 20%, and the treasury's governed floor, at most 50%. A change to the governed floor waits 30 minutes and reaches only pools launched after it.

On chain nowReading
Protocol share floor
Hookr minimum

The arb recapture split

Once arb recapture is open, every arb recapture's realized profit splits between the partner, Hookr and the pool, in this order. With the partner at its full 25%, that is 25/25/50.

  1. The partner executor keeps the share set when Hookr opens the lane, up to 25% of the profit, and pushes the rest to the pool.
  2. Hookr takes 25% of the profit, whatever the pool's protocol share.
  3. The trader whose own swap opened the gap gets the trader share of what is left, 25% by default and up to 50%.
  4. The pool's LPs get the rest.
Per 1 ETH of realized profitDefault split
Partner executor, at the lane's full share0.25 ETH
Hookr0.25 ETH
Trader0.125 ETH
LPs0.375 ETH, or 0.5 ETH when no trader is paid
How one ether of realized arb recapture profit splits on a new poolThe partner executor keeps 0.25 ETH and pushes 0.75 ETH to the pool, and Hookr takes 0.25 ETH of it first. Of the 0.5 ETH left, the trader gets 0.125 ETH and the LPs 0.375 ETH.Partner · 25%0.25 ETHHookr · 25%0.25 ETHTrader · 12.5%0.125 ETHLPs · 37.5%0.375 ETHKeptPushed to the pool: 0.75 ETHLeft after Hookr's cut: 0.5 ETH, 25% to the trader and 75% to the LPsHow one ether of realized arb recapture profit splits on a new poolPartner · 25%0.25 ETHHookr · 25%0.25 ETHTrader · 12.5%0.125 ETHLPs · 37.5%0.375 ETHLeft after Hookr's cut: 0.5 ETH
Per 1 ETH of realized profit, at the default split

The LPs' part goes to all in-range liquidity and is released gradually, so liquidity added for a moment collects almost none of it. On a pool with King of the Pool on, the pot's share comes out of what is left after Hookr's cut, beside the trader's and the LPs', and only an arb recapture paid in the pool's quote fills it.

Arb recapture is live on new pools. What The Hook's executor runs the arb recapture, and if it cannot, the trade goes through without it.

Advisory blocks

An advisory block's take is its own, and no integrator shares in it.