# Swapping Explained

The swap feature is used when traders want to exchange tokens within trading pairs. 

On Camelot, users are charged a [trading fee](https://docs.camelot.exchange/tokenomics/protocol-earnings) when they make a token swap.\
[Liquidity](https://docs.camelot.exchange/get-started/castle-tutorials/providing-liquidity-explained) is provided to the exchange by liquidity providers, who add their tokens to liquidity pools.

### Swap modes

* Aggregator (V3) - This mode utilizes the Paraswap and OpenOcean APIs and combines both the Camelot V3 and V2 AMMs (Native mode uses only V3 and V2 AMMs)
* V3 - This mode exclusively uses the V3 AMM
* V2 - This mode exclusively uses the V2 AMM

### How to

{% content-ref url="step-by-step-guides/swap-tokens" %}
[swap-tokens](https://docs.camelot.exchange/get-started/castle-tutorials/step-by-step-guides/swap-tokens)
{% endcontent-ref %}

{% hint style="warning" %}
For tokens with a custom transfer **TAX**, get familiar with the following [document](https://docs.camelot.exchange/get-started/castle-tutorials/swapping-tax-tokens)
{% endhint %}

{% hint style="danger" %}
Before initiating the swap, please make sure you are satisfied with the output parameters, such as price impact, minimum received, and rates
{% endhint %}

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