> For the complete documentation index, see [llms.txt](https://docs.kaze.fi/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.kaze.fi/tigris/fees-and-trading-guide/spread.md).

# Spread

To protect liquidity providers each pair has a dynamic spread, based on short-term price volatility using the 10min SMA indicator.

Spread is calculated as: 

{% code overflow="wrap" %}

```
spread = -spreadApproaching * (relativePriceDifference) ** curveAmplification + spreadApproaching

curveAmplification = 100; 
spreadApproaching = 0.004;
```

{% endcode %}

`curveAmplification` is an arbitrary value that determines how sharp the curve is;\
`spreadApproaching` is the spread % at maximum price difference between current price and x minute SMA. \
\
This formula makes the spread react instantly to big price movements while allowing a small spread during periods of low volatility.

The spread value is shown in the pairs info bar above the chart. 

<figure><img src="https://2808992689-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FAE1MpN6HvVL853xsqgiO%2Fuploads%2F9omJyQ3Px9KAYu6mpxQn%2Fchrome_AR2qwPAB9v.gif?alt=media&amp;token=8246d142-bcea-41ad-9f6c-989939704f8e" alt=""><figcaption></figcaption></figure>

You can also see the spread in the price chart as the BID and ASK prices.&#x20;

Longs open at ASK while shorts open at BID.

<figure><img src="https://2808992689-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FAE1MpN6HvVL853xsqgiO%2Fuploads%2FD2Rrm4QKJfULPSV3JsvI%2Fchrome_PumlIXU6ye.gif?alt=media&amp;token=b2c79053-d19b-47f2-9835-c64b599f7141" alt=""><figcaption></figcaption></figure>