# Exchange Fees
## Exchange base Fee
## Dynamic Exchange Fees
Dynamic Exchange Fees is a dynamic fee on top of the normal exchange base fees for the spot exchange and is based on the market's volatility. If there is a lot of market volatility, the dynamic exchange fees increase, while when the market is calm, the dynamic exchange fees decrease to 0.
### How Dynamic Exchange Fees work
The idea of a dynamic exchange fee is to make it unprofitable for front-runners or parties that are taking advantage of volatility arbitrage.
A dynamic exchange fee contract tracks the price of a zAsset across epochs, and as the price swings, the dynamic exchange fee increases and is applied as an additional fee over the base fee. A decay factor is applied to the dynamic exchange fee the entire time, which means that over time, as the price stabilizes, the dynamic exchange fee goes back down to 0.
### To simplify:
* price volatility = dynamic exchange fee going up
* price stability = dynamic exchange fee gradually going down to 0
The dynamic exchange fee is different for each zAsset and is dependent on the market volatility for that zAsset.
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