> For the complete documentation index, see [llms.txt](https://docs.fireflylabs.app/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.fireflylabs.app/about-firefly-labs/fee-structure.md).

# Fee Structure

**To ensure seamless cross-chain transfers and a stable user experience, our fee model consists of two key components. The structure is designed to be transparent, predictable, and competitive across different blockchain networks.**

Our fee system includes:

1. **Bridge Fee** – A percentage-based service charge applied to the amount being transferred.
2. **Destination Transaction Cost** – A fixed fee used to cover on-chain transaction costs on the destination network.

This two-part fee model enables fast, secure bridging while ensuring fair compensation for protocol participants such as market makers.

### Bridge Fee <a href="#bridge-fee" id="bridge-fee"></a>

**Bridge Fee** is a service fee calculated as a percentage of the asset amount being transferred. It is charged to cover the operating costs of the protocol and provide incentives to liquidity providers who facilitate cross-chain transfers.

| Fee Type                         | Collected By               | Displayed                                |
| -------------------------------- | -------------------------- | ---------------------------------------- |
| Percentage of transferred amount | Platform and market makers | Visible during the transfer confirmation |

This fixed-rate model allows users to understand and estimate their costs before initiating a transfer.

### Destination Transaction Cost <a href="#destination-transaction-cost" id="destination-transaction-cost"></a>

After initiating a transfer, a transaction must occur on the destination chain to complete the process – for example, to claim or mint the bridged asset. This **Destination Transaction Cost** is prepaid by the user and covers the required network fees (gas) on the destination chain.

| Fee Type                                       | Used For                                      | Handled By                                                |
| ---------------------------------------------- | --------------------------------------------- | --------------------------------------------------------- |
| Flat fee, denominated in the transferred asset | On-chain execution on the destination network | Market makers or relayers executing the final transaction |

The actual cost may vary by network conditions, but our mechanism ensures price efficiency through smart adjustments.

### Dynamic Adjustment Policy <a href="#dynamic-adjustment-policy" id="dynamic-adjustment-policy"></a>

Gas costs are variable between different blockchains and over time. To maintain cost-effectiveness across Layer 1 and Layer 2 networks, our fee system includes dynamic adjustment of the **Destination Transaction Cost**, based on:

* The current gas price (Gwei) of the destination network
* Historical average fees
* Fee efficiency targets compared to market norms

These adjustments are **infrequent** and aim to keep user costs **below or at the market average**, promoting both fairness and sustainability.

### Examples

Our fee mechanism operates on an **"External Deduction"** principle — users specify the exact amount they wish to receive on the destination chain. The system then calculates the required source chain amount inclusive of all associated fees. **Assuming a bridge fee rate of 0.01%**, the fee calculation formula is:

**Total Fee = (0.01% × Bridged Amount) + Destination Chain Transaction Cost**

{% tabs %}
{% tab title="Example 1 : Transfer from Arbitrum → Eclipse" %}
You want to **receive 1 ETH**

* Bridge Fee: 0.0002ETH (0.02%)
* Destination Transaction Cost: 0.00005 ETH
* **You pay: 1 + 0.0002 + 0.00005 = 1.00025 ETH**
  {% endtab %}

{% tab title="Example 2: Transfer from Ethereum → Sui" %}
You want to **receive 100 USDC**

* Bridge Fee: 0.04USDC (0.04%)
* Destination Transaction Cost: 0.2 USDC
* **You pay: 100 + 0.04 + 0.2 = 100.24 USDC**
  {% endtab %}
  {% endtabs %}

### Fee Transparency and Updates <a href="#fee-transparency-and-updates" id="fee-transparency-and-updates"></a>

Users can always preview the exact fees before confirming any transfer. We are committed to fee transparency and provide timely updates on any changes.

* All fees are displayed within the app prior to confirmation
* Fee adjustments (if any) are announced via Discord and Twitter
* No hidden or backend charges apply


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