# Dynamic Swap Fee Mechanism

* Below is an explanation of how dynamic swap fee is determined. 

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* The *pool's price before swap* is equal to the price before the first swap of the block. Thus, every swap uses this reference price for the *pool's price before swap*.
* Below are a few examples of dynamic swap fee for ETH/USDC pool.

<table><thead><tr><th width="187" align="center">Price before Swap</th><th width="158" align="center">Price after swap</th><th width="157" align="center">Execution price </th><th align="center">Dynamic Swap Fee</th></tr></thead><tbody><tr><td align="center">2000 USDC</td><td align="center">2200 USDC</td><td align="center">2080 USDC</td><td align="center">$120 (6%)</td></tr><tr><td align="center">2000 USDC</td><td align="center">1999 USDC</td><td align="center">1999.02 USDC</td><td align="center">$0.02 (0.0002%)</td></tr><tr><td align="center">2000 USDC</td><td align="center">1999 USDC</td><td align="center">1999.6 USDC</td><td align="center">$0.6 (0.03%)</td></tr></tbody></table>