Bitkit
Fees
Blocktank Liquidity Fees for Bitkit
Default Amount: For any new standard channel opening, the default LSP balance is 450 euros. The default Channel size will always equal to 450 euros.
- For Client balances of 0 to 225 euros, the channel size remains 450 euros.
- For Client balances of 225 to 495 euros, the LSP balance matches the Client balance.
- For Client balances of 495 to 950 euros, the LSP balance is 950 euros minus the Client balance.
Advanced Mode: Liquidity Customization:
The user can access advanced settings to adjust the liquidity of their channel. The user can select the amount of liquidity they want when opening a channel. This amount must meet the following conditions:
- Minimum: The Client balance must be at least equal to the amount paid by the user.
- Maximum: The maximum Channel size is 950 euros, considering already opened channels.
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 |
Channel Capacity | Funds into the channel | 1% per year, adjusted for lease duration |
(Capitalized terms have the meanings given in the Bitkit Wallet Terms.)
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