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3 min min read

What the trading fee is and why to check it

A small hidden percentage can turn into a trap

What it is, in plain terms

Some tokens automatically apply a small percentage withheld on every buy or sell transaction -- a "trading fee" built directly into the contract, which the developer receives or uses for other purposes (e.g. funding liquidity).

It isn't inherently illegal or always in bad faith: many legitimate projects openly declare it from launch, as a model for ongoing funding.

Why it's a real risk, not just a theoretical one

The real danger isn't the fee itself, but the fact that the contract can be written to let the developer change it at any time after launch: some tokens start with a 0% fee to look harmless, then raise it to 90-99% as soon as they've accumulated enough buyers, effectively making it impossible to sell in an economically sensible way.

It's one of the most common mechanisms through which a token turns into a full-blown honeypot after launch, not before -- which is why it's closely linked to that check.

How CriptoCheck checks it

We read the currently set transfer fee percentage directly from the contract, at the exact moment of the check.

We only consider a fee of zero green; any non-zero value is flagged red, no matter how small it looks today -- precisely because it could change in the future without warning.

What it does NOT guarantee, to be honest

Our check only captures the CURRENT value of the fee, at the exact moment of verification -- it can't predict whether the developer will change it in the future, nor how many times they already have in the past.

A zero fee today isn't a permanent guarantee: if the contract includes the function to change it, it's worth re-checking periodically if you're monitoring the token over time.

Now that you know what it means, try CriptoCheck on a real token.

Check a token now