> For the complete documentation index, see [llms.txt](https://docs.houstonswap.io/houstonswap/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.houstonswap.io/houstonswap/advanced-topics/formula.md).
# Formula
### Dynamic Fee
Step Function of Sigmoids
Major Formula
Where:
The sum of 3 components has similar effect as Triple Tier Fee model.
: adjust the max. cap for each absolute fee tier
: shift the fee tier adjustment threshold - the larger beta , the greater the volatility allowed for fee tier change
: adjust the slope of fee changes when it comes across 2 absolute fee tier
Note:
* is capped by 1
* `Gammas must be > 0`
---
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