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6.BenPay Swap FAQ

Swapping
Q1: How is the swap price calculated?
A: The price is automatically calculated based on the ratio of the two tokens in the liquidity pool and fluctuates in real-time with market activity
 
Q2: What is "Slippage"?
A: Slippage is the acceptable price movement during a transaction. Higher slippage tolerance increases success rate but may result in a less favorable price. Using the system default is recommended.
 
Q3: Why might a swap fail?
 A: Possible reasons include slippage tolerance set too low, network congestion, or insufficient liquidity pool depth.
 
Liquidity
Q1: Do I receive all my assets immediately after removing liquidity?
A: Yes. You will receive both tokens back according to the pool's current ratio, which may differ from your initial deposit due to price changes and potential Impermanent Loss. Impermanent Loss: When the market prices of the pooled tokens fluctuate significantly, the value of your deposited assets may be lower than if you had simply held them. This difference is "Impermanent Loss." Greater price volatility increases this risk.
 
Q2: How often are fee earnings updated after adding liquidity?
 A: Your fee earnings are updated in real-time. The system automatically calculates them based on your share of the pool and trading volume. You can view accumulated earnings anytime and withdraw them to your wallet.
 
Q3: What does "Out of Range" mean for my liquidity position?
A: "Out of Range" means the current market price has moved outside the custom price range you initially set for your liquidity. When the price is outside this range, your liquidity temporarily stops facilitating trades and does not earn fees.
 
Q4: Are there amount limits for adding liquidity?
A: Currently, there are no strict minimum or maximum limits. Participation is flexible.
 
Q5: Can I withdraw my assets anytime?
A: Yes, you can add or remove liquidity at any time, instantly receiving the corresponding share of both tokens to your wallet. Note that network conditions and market depth may affect large transactions, potentially causing slippage, which you can configure.
 

Q6. How often are fee earnings from providing liquidity updated?
Your fee earnings are updated in real-time. The system automatically calculates them based on your share of the liquidity pool and the trading volume. You can view your accumulated earnings anytime in the interface and withdraw them to your wallet at any time.

Q7. What does it mean when my liquidity position shows "Out of Range"?
"Out of Range" indicates that the current market price has moved outside the custom price range you initially set for your liquidity. When the price is outside this range, your liquidity becomes inactive and stops participating in trades, meaning it will not accrue any trading fees during that period.

Q8. Is there a minimum or maximum amount required to add liquidity?
Currently, there are no hard minimum or maximum amount restrictions. You can participate flexibly.

Q9. Can I withdraw my assets at any time?
Yes, you can add or remove liquidity at any time. Your corresponding share of the two assets will be returned to your wallet in real-time. However, please be aware of network conditions and market depth, as large operations might involve slippage, which can be adjusted in the settings.

10. Why are the fees for BUSD/USDT and BUSD/USDC so low (0.05%)?
A: This is designed to encourage users to prioritize direct stablecoin swaps, improving capital efficiency while lowering transaction costs for everyone.

11. Is cross-pool trading more expensive or subject to higher slippage than direct swaps?
A: Cross-pool trading involves two liquidity pools, each charging its own fee (e.g., BTC/BUSD at the standard rate, then BUSD/USDT at 0.05%). However, thanks to the ample depth of the BUSD stablecoin pools, the overall slippage is typically very low, making the total cost still highly competitive.

12. Can I provide liquidity to the new stablecoin pools?
A: Absolutely! The BUSD/USDT and BUSD/USDC pools are open for users to add liquidity. You can put your idle assets to work and earn a share of the transaction fees.

13. Do I need to operate in two separate pools when making a cross-pool swap?
A: No, you don't. The system automatically handles the path splitting and aggregation. You only need to select your final target trading pair and confirm the transaction with a single signature.

14. Does the official liquidity affect my trading price?
A: The official liquidity is primarily used to maintain market depth and ensure price stability. Your trades still follow the AMM mechanism, with prices determined by the real-time ratio within the pools. The official liquidity works in conjunction with all other user-provided liquidity and does not have any additional impact.

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Last modified: 2026-03-19