Fees

XChains charges a fixed Outbound Fee and a dynamic Liquidity Fee.

To ensure transparency and fairness, we have developed a comprehensive fee model that reflects the various costs associated with each cross-chain transaction. Below is a detailed breakdown of these costs.

Breakdown of Costs:

Gas Fees: Each transaction incurs gas fees, which are the costs paid to miners for processing transactions on the respective blockchain networks. These fees vary depending on the network's activity and can fluctuate over time.
Bridge Fees: To utilize our cross-chain bridge, a small fee is charged to cover the operational costs of maintaining the bridge infrastructure. This fee is set at 0.5% of the transaction amount. For example, for a transaction amount of $1,000, the bridge fee would be $5.
Liquidity Pool Fees: Our protocol leverages private liquidity pools to ensure ample liquidity and smooth transactions. We charge a liquidity pool fee of 0.2% of the transaction amount, which translates to $2 for a $1,000 transaction.
Operational and Security Costs: To maintain the high security and efficiency of our protocol, we incur various operational and security costs. These include infrastructure maintenance, regular security audits, and compliance measures. We have estimated these costs to be around $2 per transaction.
Buffer for Volatility and Slippage: To account for exchange rate volatility and potential slippage during transactions, we include a small buffer of 10% of the total calculated costs. This ensures that our fee model remains sustainable even in fluctuating market conditions.

Setting the Fee:

To provide our users with a clear and straightforward fee structure, we offer two options:

Fixed Fee: A flat rate of $X per transaction, ensuring simplicity and predictability.
Percentage Fee: A variable fee of Y% of the transaction amount.

By carefully considering each cost component, our fee model aims to provide a balance between fairness for our users and the sustainability of our protocol. We are committed to maintaining transparency in our fee structure and continually optimizing our costs to provide the best possible service.

PreviousTechnology NextGovenance

Last updated 9 months ago

Breakdown of Costs:

Gas Fees: Each transaction incurs gas fees, which are the costs paid to miners for processing transactions on the respective blockchain networks. These fees vary depending on the network's activity and can fluctuate over time.

Bridge Fees: To utilize our cross-chain bridge, a small fee is charged to cover the operational costs of maintaining the bridge infrastructure. This fee is set at 0.5% of the transaction amount. For example, for a transaction amount of $1,000, the bridge fee would be $5.

Liquidity Pool Fees: Our protocol leverages private liquidity pools to ensure ample liquidity and smooth transactions. We charge a liquidity pool fee of 0.2% of the transaction amount, which translates to $2 for a $1,000 transaction.

Operational and Security Costs: To maintain the high security and efficiency of our protocol, we incur various operational and security costs. These include infrastructure maintenance, regular security audits, and compliance measures. We have estimated these costs to be around $2 per transaction.

Buffer for Volatility and Slippage: To account for exchange rate volatility and potential slippage during transactions, we include a small buffer of 10% of the total calculated costs. This ensures that our fee model remains sustainable even in fluctuating market conditions.

Setting the Fee:

To provide our users with a clear and straightforward fee structure, we offer two options:

Fixed Fee: A flat rate of $X per transaction, ensuring simplicity and predictability.

Percentage Fee: A variable fee of Y% of the transaction amount.