Highlights the rates on XY's various services or activities and lets users know what to expect when working with us.
There are a few kinds of fees incurred as the swapping process pushes on, and more often than not they include the gas fee, the swap fee charged by XY Protocol, and/or the swap fee charged by aggregators and decentralized exchanges, etc.
How fees are incurred in relation to XY Protocol abides by the formulae as follows:
- A small portion of fees is taken as a basic commission (XY Fee). Note that one can imagine the f in the formula below as a constant, or a percentage figure by which any transaction amount (trading volume) should multiply, usually determined by XY DAO.
- There are lower and upper bounds in the Fee Structure to ensure that XY Protocol can afford gas fees and will not impose any surcharges upon users.
- You can envisage that the Fee Structure constitutes a range, and the ceiling of the range is called an upper bound (i.e. maxFee), the floor of the range a lower bound (i.e. minFee). ☝🏻 If the trading volume multiplied by f is less than the minFee, then XY Protocol will still charge the minFee as a basic commission. ☝🏻 If the trading volume multiplied by f is more than the maxFee, then XY Protocol will only charge the maxFee as a basic commission.
The major difference here is that we consider not only the target (tgt. for short) chain but the source (src. for short) chain. Another difference that's also worth your attention lies in the fact that maxFee is 1,000 instead of 2,000 USD. Below is the table that explicitly shows the minimum XY Fee required for the four Networks as a source chain and a target chain respectively.
Next, from the table below we can see that swapping from, for instance, BNB Chain to Ethereum with Multichain would charge 100.4 USD as XY Fee.