# What is a Network Fee

## When and How are Network Fees Applied?

>  :warning: These are the general two conditions when a network fee is applied in the denomination of said currency.

1. 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.*
2. 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.

### Why is Multichain's network fee higher than other exchanges?

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.

{% hint style="success" %}
Network fee (`networkFee`) is also specified in our Merchant API. View the example query :point\_right: "Get Asset Info" by clicking the page link below.
{% endhint %}

{% content-ref url="/pages/-Mb1t97eZz0xQnGLXxy3" %}
[Merchant API (Private)](/start/api/private-api.md)
{% endcontent-ref %}

## Read also

{% content-ref url="/pages/-MdMJGTsDPhUBPaSAFmh" %}
[What is the Minimum Deposit Rule](/faq/deposite-rule.md)
{% endcontent-ref %}

{% content-ref url="/pages/-MdMNm6\_9GdC3Szkkl\_o" %}
[What is a Platform Fee](/faq/platform-fee.md)
{% endcontent-ref %}

{% content-ref url="/pages/-MdNtkXli2LNgQM\_X6z0" %}
[Fee Schedule](/platform-fee-list.md)
{% endcontent-ref %}


---

# Agent Instructions: Querying This Documentation

If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question.

Perform an HTTP GET request on the current page URL with the `ask` query parameter:

```
GET https://docs.multichain.info/faq/network-fee.md?ask=<question>
```

The question should be specific, self-contained, and written in natural language.
The response will contain a direct answer to the question and relevant excerpts and sources from the documentation.

Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.