so is that a 5% fee written in a weird way or basically 0%?

if you have a token paired between multiple other things that change in value, the swap fees are the only mitigation to the constant decay of arbitrage from volatility.

I'll give an example in-case charity was not the goal:

let's say you have a simple setup like [BTC:SPS] / [SPS:ETH]
in this case,
-if BTC price increases you are selling it at a discount
-if BTC drops in price you are selling ETH at a discount
-if ETH price increases you are selling it at a discount
-if ETH drops in price you are selling BTC at a discount
any arbitrage profit comes from somewhere - where does it come from?
pool fees are a way to make arbitrage trading benefit trader and LPs.

honestly idk anything about garbage-chain EVM pools with TX fees but if the pool fees are literally "0.05%" then all other things being equal I would expect your funds to decay over time and never truly reflect any gains from BTC/ETH/SOL price movements.
hive engine fees being 0.25% is already borderline insanity if you think about it.