# Dynamic Swap Fee Mechanism
* Below is an explanation of how dynamic swap fee is determined.
* 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.
Price before Swap
Price after swap
Execution price
Dynamic Swap Fee
2000 USDC
2200 USDC
2080 USDC
$120 (6%)
2000 USDC
1999 USDC
1999.02 USDC
$0.02 (0.0002%)
2000 USDC
1999 USDC
1999.6 USDC
$0.6 (0.03%)
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