> For the complete documentation index, see [llms.txt](https://staking-primer.gitbook.io/staking-primer-docs/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://staking-primer.gitbook.io/staking-primer-docs/how-to-check-if-a-transfer-tax-token-can-swap.md).

# How to check if a transfer-tax token can swap

If a token takes a cut when it moves, check its transfer tax before placing a swap order. The tax can make the amount received differ from the amount the trade needs to settle.

### What does a transfer tax change?

A transfer-tax token deducts some tokens each time it moves. The deduction may go to the token’s issuer, a pool, or a burn address, which removes tokens from circulation.

For example, if a token charges 2% on transfers, sending 100 tokens may deliver only 98. The person or contract receiving them gets less than the amount sent.

That difference matters in a swap: the order sets amounts to sell and receive, and settlement contracts need those amounts to match. EIP-20 defines the common token transfer functions, but tokens can add their own rules to those functions.

### Why can the order fail to execute?

A solver is software that finds and submits a way to settle orders. Before submitting a trade, it checks whether the token transfers and whether the settlement balances work.

If the sell token takes a cut, the settlement contract may receive less than the order requires. If the buy token takes a cut, you may receive less than the order promises. Either case can make the simulated trade fail, so the solver may skip it.

A common mistake is to keep retrying because the token appears in the swap list. Instead, check the token’s transfer rules on the exact network you are using. Some taxes apply only to certain wallets, trading pools, or transfer types, so a normal wallet-to-wallet transfer may not show what happens in a swap.

The [cowswap interface](https://ameblo.jp/pollky09/entry-12982268152.html) lets you sign a requested trade for solvers to settle, but it cannot make a taxed transfer deliver the expected amount. CoW Protocol’s technical documentation describes how orders are simulated and settled; a token that fails those checks may be unavailable or remain unfilled.

### What should you check before trying again?

Look up the token’s official transfer rules and confirm the contract address and network match the asset in your wallet. Check whether the tax is active, who pays it, and whether it applies when tokens move to or from a trading contract.

If the tax can be turned off, verify that it is actually off before placing a new order. A token’s label or a quoted price cannot confirm that its contract will deliver the expected amount. If you cannot confirm its behavior, do not assume a retry will work.

If the order already failed, check its status before signing another. A signed order can expire without a trade; an on-chain settlement attempt can use gas if it reverts. If the interface marks the token unsupported, treat that as a compatibility issue and check the token issuer’s guidance before taking another step.

### Related questions

#### Does a transfer tax mean the token is a scam?

No. A transfer tax is a token rule, and its presence alone does not establish whether a token is safe or legitimate. It can still make some trading systems unable to settle swaps. Check the official contract address, the current tax settings, and the token issuer’s explanation before deciding how to proceed.

#### Can I just increase the swap amount?

Usually, that does not fix the cause. A percentage tax also applies to the larger transfer, so the settlement may still receive less than expected. First confirm whether the tax applies to the relevant transfer and whether it can be disabled. Do not increase an order unless the interface gives a valid quote and you understand the amount at risk.

#### Why does the token show a price if it cannot trade?

A displayed price may come from past trades or other market data. It does not prove that a solver can currently settle an order using the token. Check whether the interface accepts the order and whether it can execute; a price alone is not confirmation that the transfer rules are compatible.

* Check the token contract and network.
* Find out when its transfer tax applies.
* Use a swap only if the token can deliver the expected amount.