What does mean “Transfer Tax”

Transfer Tax 5%

On some tokens, each transfer(transaction) can cost you a transfer tax of up to 5% (!).

A part of these transfer tax are possibly added to the liquidity pool, are burnt or going to the treasury.

This rate is fixed in the token contract, so whatever AMM/DEX you use the transfer tax will be deducted (on some contracts the transfer tax % value can be updated)

10% max on $PANTHER token — Source: https://github.com/pantherswap/panther-farm/blob/master/contracts/PantherToken.sol#L17-L18

Source: https://github.com/pantherswap/panther-farm/blob/master/contracts/PantherToken.sol#L218-L226

SatisfiToken contract — Source: https://bscscan.com/address/0xA1928c0D8F83C0bFB7ebE51B412b1FD29A277893#code

These transfer taxes can cause troubles, such as for example forcing the user to increase the slippage tolerance on PancakeSwap or other AMM/DEX.

Swap Naut warning on Apeswap

So do your own research, check contracts and stay safe. See you next time!

The KST (Koala Security Team)

Safety first on Koala DeFi

ℹ️ For those who are wondering, there is no transfer tax on the 🍃 $LYPTUS token contract