Bonding curve and graduation
Before graduation, the price follows a formula rather than a conventional order book. Virtual reserves are inputs to that formula; they are not necessarily assets a trader can withdraw. Pump.fun says graduation is automatic and irreversible once the curve completes, after which trading continues in a PumpSwap pool.
What are the fees?
As of September 2026, Pump’s official schedule lists a 1.25% total fee for bonding-curve trades. The official non-canonical PumpSwap example totals 0.30%—0.05% protocol plus 0.25% liquidity-provider fee and 0% creator fee—but canonical and dynamically configured pools can use different splits. Interfaces may add their own fee.
Do not save those numbers as permanent truth. Confirm the official Pump fee schedule before modelling a real trade. The official bonding-curve documentation explains the current curve and graduation process.
Why market cap can multiply quickly
If circulating supply is unchanged, market cap moves in the same ratio as price. A move from $20,000 to $100,000 is 5×, so a frictionless position would also be worth about 5×. A real exit is lower after entry fees, exit fees, price impact and any transfer tax.
What to practise before risking funds
- Compare the same buy size at different liquidity levels.
- Record entry market cap and current market cap from the same supply basis.
- Estimate the exit, not only the visible position value.
- Test tight and loose slippage settings on a fast market.
- Watch what changes before and after graduation.
This page explains mechanics, not whether any token is worth buying. New tokens can fall to zero.