🌐What is a Network Fee
Last updated
Last updated
These are the general two conditions when a network fee is applied in the denomination of said currency.
If a deposit amount is equal or higher than deposit minimum, network fee is then deducted from masterwallet balance for deposits into subwallets or masterwallets.
If a deposit amount is equal or higher than deposit minimum, network fee is then deducted from masterwallet balance when a withdrawal request is submitted.
Crypto exchanges charge lower network fee for withdrawals and no deposit fee because the cost is absorbed by focusing on turning profit from user trading activity.
At multichain our incentives are fixed with each deposit known as our platform fee. It is too little in comparison and impossible to cover the network fee cost on the Ethereum blockchain.
Explanation: For ERC20 token transactions, additional transaction is required to process your customer's deposit. Essentially, funding and sweeping ERC20 tokens out of the warm wallet to our cold wallet. Hence, we average the network fee across our platform to fix only a single network fee for deposit and withdrawal as standardisation.
Network fee (networkFee) is also specified in our Merchant API. View the example query "Get Asset Info" by clicking the page link below.