Bridging Fees

As of 02/01/2025

When utilizing our bridge, certain fees apply. Some of these fees are attributed to the gas fees associated with blockchain transactions, while others represent the bridge's operational gains.

Bridge to MultiversX Fees

Transaction Fees

To execute a bridge to MultiversX several fees must be paid, some of which are directly charged to the users, while others are discounted from the amount received or covered by the protocol as operational expenses.

1. Sending funds from the user’s wallet to the provisional wallet. This fee is paid in TAO by the user at the moment they sign the transaction. The funds to pay this fee are taken from the user's wallet balance. The value at the moment this document is written is around 0.00012 TAO.

2. Moving funds from the provisional wallet to the Treasury. The Treasury, also called Cold Wallet, holds all the incoming TAO from users. This fee is paid in TAO and is deducted from the balance received in the provisional wallet. The fee amount is also equivalent to the fee for sending funds (0.00012 TAO).

3. Staking funds received at the Treasury. This fee is also paid in TAO and is deducted from the balance in the Treasury. The fee amount is the same as the previous transaction fee (0.00012 TAO).

4. Minting the wTAO to the user. As this is a MultiversX transaction, the fee is paid in EGLD. The protocol covers this fee, using the EGLD balance from the wallet that initiates the minting transaction, referred to as the Minter.

Bridge Fees

The bridge fee is the amount of TAO or wTAO that the protocol receives for the services provided. This amount is calculated as a percentage of the wTAO minted. The current percentage value is 0.5%. This value can change.

Taking into account the values mentioned above it is possible to calculate the amount that the user will receive after the fees deduction from the amount burnt.

$$Amount\ Received = (Amount\ Sent - Move\ To\ Treasury\ Fee - Staking\ Funds\ Fee) \times (1 - Bridge\ Fee)$$

As an example, considering the current values, if a user bridges 100 TAO.

$$Amount\ Received = (100\ TAO - 0.000124579 - 0.000124579) \times (1 - 0.005) \\= 99.499752087$$

Bridge to Finney Fees

Transaction Fees

To execute a bridge to Finney several fees are incurred, some of which are paid directly by the user, while others are covered by the protocol.

1. Burning wTAO gas fee. This fee is paid in TAO by the user at the moment they sign the transaction. The funds to pay this fee are taken from the user's wallet balance. The value at the moment this document is written is around 0.000000001 EGLD (0.0526 USD).

2. Unstaking TAO. This fee is paid in TAO to unstake the required funds and cover the gas fee for sending the transaction to the user. The fee is deducted from the balance of the proxy wallet. Currently, this fee is around 0.00012 TAO.

3. Moving funds to the user. This fee is paid in TAO and is taken from the balance of the signers. The fee is approximately twice the amount paid for unstaking.

Bridge Fees

The bridge fee is the amount of TAO or wTAO that the protocol receives for the services provided. This amount is calculated as a percentage of the wTAO burnt. The current percentage value is 1% and this value can change at any moment.

Taking into account the values mentioned above it is possible to calculate the amount that the user will receive after the fees deduction from the amount sent to the provisional wallet.

$$Amount\ Received = (Amount\ Burnt) \times (1 - Bridge\ Fee) - Unstaking\ Fee - Sending\ Funds\ Fee$$

As an example, considering the current values, if a user bridges 100 TAO.

$$Amount\ Received = (100\ TAO) \times (1 - 0.01) - 0.0001245797\ TAO - 2 \times 0.0001245797\ TAO \\= 98.999862579\ TAO$$

Minimum Amount to Bridge

For both directions of the bridge, there is a minimum amount required to initiate a transaction. As of the time this document was written, the minimum amount is set at 0.1 TAO for both bridging to MultiversX and Finney.

The minimum amount to be minted is controlled by the Smart Contract and is currently set at 0.1 TAO.

The minimum amount to be burned is also controlled by the Smart Contract. However, it differs from the minting minimum due to the transaction process. When a bridge back is initiated via the user front end, the wTAO is not immediately burned. Instead, the wTAO is first sent to the wTAO Smart Contract, where a portion is burned based on the bridge fee. Currently, 0.99% of the received amount is burned. Therefore, the minimum amount to be burned is calculated as 0.1 TAO * 0.99, which equals 0.099 TAO.