> For the complete documentation index, see [llms.txt](https://kresko.gitbook.io/kresko-docs/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://kresko.gitbook.io/kresko-docs/fundamentals/cdps/scdp/swaps.md). # Swaps Native exchange of Kresko Assets {% hint style="info" %} **This documentation is a work in progress!** {% endhint %} [Collateral value](/kresko-docs/fundamentals/cdps.md#collateral-deposit-value) available in the [SCDP](/kresko-docs/fundamentals/cdps/scdp.md) is utilized by accounts swapping their [Kresko Assets](/kresko-docs/fundamentals/kresko-assets.md) for an equivalent value of another Kresko Asset, minus a [fee](#fees). The account receives the desired Kresko Assets either as newly minted ones – incurring debt to the SCDP – or from available protocol owned collateral resulting from prior exchanges. The assets provided by the trader in a swap contribute to repaying any outstanding debt tied to the specific asset.

Swap creating protocol owned collateral and new debt

### Protocol Owned Collateral In the scenario where the asset has no existing debt, the provided assets become temporary deposits within the SCDP, marked as protocol owned collateral.

Subsequent swap uses the protocol owned collateral and repays the debt

This temporary deposit serves as valid collateral subject to liquidation and a reservoir for subsequent swaps, offering an alternative to minting new assets and enhancing the efficiency of the protocol's capital utilization. ## Fees Swap fees are configured **per asset and direction**, thus the final fee percentage depends on the asset pair and direction taken. {% hint style="success" %} Fees are not used as collateral and can be claimed at any time. They cannot be seized in a liquidation. {% endhint %}