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Encyclopedia DeFi · Entry 167

Fee-on-transfer tokens: when the received amount is smaller

AI-assisted research · separate automated verificationCorrections

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DeFi
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3 cited records
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At a glance

Key facts

Key facts for Fee-on-transfer tokens: when the received amount is smaller
FactDetailSource
Amount receivedA transfer deduction can make received units smaller than the requested amount.[1]
V3 scopeUniswap documents fee-on-transfer tokens as incompatible with its v3 router contracts.[1]
Possible adaptationThe cited documentation mentions token wrappers or customized routers as possible workarounds.[1]
01

Calculate the recipient’s balance change

If a hypothetical token deducts 2% from a requested 100-unit transfer, the recipient receives 98 units. The destination of the other two units depends on that token’s implementation.

A swap expecting the full 100 units cannot safely pretend the same input arrived. The example illustrates accounting; it does not assert a fee for any live token.

02

Check every transfer used by the integration

A route can move tokens between a wallet, router and pool. Compatibility is a property of that complete interaction, rather than proof supplied by an ERC-20-like symbol or interface.

The Uniswap integration page identifies v3 router incompatibility. It should not be broadened into a claim that every exchange, protocol version or custom route treats all such tokens identically.

03

An adapter adds its own requirements

A wrapper or custom router must account correctly for the token’s actual transfers. Its existence does not establish that it is deployed, supported by the selected interface or safe to use.

Before relying on an output quote, inspect how the route measures received amounts and enforces the holder’s execution limit. Treat any displayed fee assumption as part of the calculation, not a universal property of token transfers.

Direct answers

Questions people ask

Is a token’s transfer fee the same as Ethereum gas?

No. Gas pays for transaction execution under Ethereum’s fee rules. A token transfer deduction is behavior of the token contract; a transaction can involve both.

Inspect the evidence

The answer and key facts have stable claim links. These records retain the scope and qualification when reused.

A fee-on-transfer token deducts a charge under its transfer rules, so a recipient may receive fewer units than the sender requested to move. Integrations that assume the requested amount always arrives can fail or misaccount. Compatibility depends on the exact token and route; Uniswap’s cited warning specifically concerns its v3 router contracts.

Scope: DeFi · data through 2026-10-02. Verification: verified · 2026-10-02T18:19:48.887Z.

Link to this claim
Amount received: A transfer deduction can make received units smaller than the requested amount.

Scope: DeFi · data through 2026-10-02. Verification: verified · 2026-10-02T18:19:48.887Z.

Link to this claim
V3 scope: Uniswap documents fee-on-transfer tokens as incompatible with its v3 router contracts.

Scope: DeFi · data through 2026-10-02. Verification: verified · 2026-10-02T18:19:48.887Z.

Link to this claim
Possible adaptation: The cited documentation mentions token wrappers or customized routers as possible workarounds.

Scope: DeFi · data through 2026-10-02. Verification: verified · 2026-10-02T18:19:48.887Z.

Link to this claim
Revision history
  1. — First publication after primary-source research and independent automated verification.

Source register

Sources and references

Retrieval dates and locators are recorded individually.
  1. Token integration issuesUniswap

    Token behavior can break assumptions or impose costs on pool positions.

    Locator: Fee-on-transfer tokens; Rebasing tokens · Version / scope: Uniswap documentation · Retrieved: 2026-10-02T17:03:45.896ZOpen source
  2. ERC-20 Token StandardEthereum Improvement Proposals

    Token supply, displayed units and balance accounting.

    Locator: totalSupply; balanceOf; transfer; decimals; approve; allowance; transferFrom; Transfer · Version / scope: ERC-20 · Retrieved: 2026-10-02T17:03:45.826ZOpen source
  3. Gas and feesethereum.org contributors

    Execution resource units, fee components and gas expenditure.

    Locator: What is gas?; Base fee; Priority fee · Retrieved: 2026-10-02T17:03:41.688ZOpen source
How this article was made

Research and drafting use AI assistance. A separate automated review checks claims against primary sources; no external expert or named human review is implied. Publication, substantive editing, source retrieval and verification are recorded separately. This version was independently checked by an automated reviewer on 2 October 2026.

Editorial method and corrections

Degrees of Satoshi editorial project. “Fee-on-transfer tokens: when the received amount is smaller.” Published 2026-10-02; updated 2026-10-02. https://degreesofsatoshi.com/encyclopedia/fee-on-transfer-tokens/