Bitkit
Fees
Blocktank Routing Fees for Bitkit
Table A
Channel Type* | Fee Description | Fee |
Base fee | standard base fee for all transactions | 10 msat |
Variable Fee | dependent on liquidity distribution between LSP and client | see Table B below |
Public channels
Table B
Liquidity on LSP Side | Variable Fee (ppm) | Description |
0% to 15% | 2000 ppm | high fee when most liquidity is on the client side |
15% to 30% | 1500 ppm | moderate fee |
30% to 70% | 1000 ppm | balanced fee |
70% to 85% | 200 ppm | low fee as liquidity shifts towards LSP |
85% to 100% | 1 ppm | minimal fee when most liquidity is on the LSP side |
Note: The exact ppm values may be adjusted to optimize performance. Generally, fees decrease as more liquidity is on the LSP side, with a maximum of 4000 ppm.
Private Channels
Table C
Channel Type | Fee Description | Fee |
Private Channel Fee | Fixed fee for private channels, which don't route dynamically | 1000 ppm |
Channel Sales Fees for Blocktank
When Blocktank sells a channel to Bitkit or another node, fees are calculated by applying the Final Fee Formula. This formula ensures the fees are proportional to the lease duration and current mining costs.
Final Fee Formula: Mining Fee + LSP Balance * 1% * Lease Duration in weeks / 53
Mining Fee
Table D
Fee Type | Description | Calculation |
Mining Fee | Covers the costs of opening/closing channels based on current on-chain fees | dynamic, based on estimated transaction sizes and current fees |
Channel Size Fee
Table E
Channel Size | Description | Fee |
LSP Balance | Funds provided by Blocktank | 1% per year, adjusted for lease duration |
Client Balance | Funds provided by the client (Bitkit) | 0% per year |
(Capitalized terms have the meanings given in the Bitkit Wallet Terms.)
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