Blocktank Fee Schedule

Blocktank Routing Fees for Bitkit

Table A

Channel Type*

Fee Description


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)


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


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



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



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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