We calculate network fees by:
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Average Withdrawals: We determine the average number of withdrawals over the last four days for bulk withdrawals.
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Blockchain Fees: We check the current blockchain fees for the bulk withdrawal. These transactions are processed in batches.
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Estimated Fees: We calculate the estimated fees for the current withdrawal.
It’s important to understand that the terms and mechanisms for network fees can vary depending on the cryptocurrency and blockchain network.
For example, Bitcoin has mining fees, Ethereum involves gas fees, Ripple includes transaction costs, and Litecoin imposes fees for miners.
Here’s the specific formula we use to calculate network fees:
Network Fee = (fee_per_kb * transaction size / 1024).round_up(8)
* The default transaction size for BTC network fees is 223.
Keep in mind that the ‘fee_per_byte’ element in this calculation is variable.
The network fees we set, based on the above algorithm, are confirmed at the time of withdrawal. Therefore, these fees remain unchanged regardless of the network conditions when the information is sent to the actual blockchain.
We reference Ethereum Gas Tracker and deduct an amount equivalent to the average Gas fee from the user’s balance. Users can also check the actual network fees on the Ethereum blockchain based on the average amount shown on Ethereum Gas Tracker. For ERC-20 tokens, withdrawal fees are always deducted from the specific cryptocurrency withdrawn from the exchange.
