TOKI Fee

Overview

Bridge Fees are deducted from your transaction, and all necessary gas costs are collected from the source chain.

The total amount shown in the wallet's notification window includes the following fees and gas costs:

• TOKI Fee

  • Transaction Fee

  • Rebalance Fee and Reward

• Relayer Gas Cost

• Messaging Fee

Transaction Fee

Each transfer through the TOKI protocol will incur a 10 bps fee, with a minimum fee of $0.25 or 0.0001 ETH. Here's the fee allocation breakdown of the transaction fee:

• Protocol Treasury: (TBD)

• Liquidity Provider: (TBD)

• veTOKI Holder: (TBD)

Rebalance Fee and Reward

To ensure smooth and successful token swaps between liquidity pools, TOKI must maintain adequate balance in each pool. When swaps occur, they can deplete the balances on destination chains and increase them on source chains. To manage this, TOKI has implemented a rebalance system. This system provides incentives for users to perform swaps that help restore the balance and discourages actions that would entirely deplete the pool balances.

The rebalance fees and rewards are set as follows:

• Ideal balance: $B_i$
• Balance after the transaction: $B_t$

Rebalance Cost	Condition
0	$\delta_1 B_i <= B_t$
$\frac{\lambda_1}{(\delta_1-\delta_2) B_i} (\delta_1 B_i - B_t)$	$\delta_1 B_i > B_t >= \delta_2 B_i$
$\lambda_1 + \frac{\lambda_2}{(\delta_1-\delta_2) B_i} (\delta_1 B_i - B_t)$	$\delta_2 B_i > B_t$

where hyperparameters are set as follows:

• $\lambda_1$ : 40bps
• $\lambda_2$: 99.54%
• $\delta_1$ : 60%
• $\delta_2$ : 5%

If the pool on the source chain is in deficit, users will receive a rebalance reward. The reward is calculated as a rebalance Incentive/deficit (should be over 6 bps). However, the payment amount is capped at the Protocol Fee to ensure the user does not generate a surplus.

(*1) Deficit: This occurs when the amount of stable tokens held by the pool is less than the total amount of stable tokens provided as liquidity to the pool.

Relayer Gas Cost

To facilitate cross-chain transactions, the TOKI protocol covers gas fees on both the source and destination chains. Users pay the gas fee on the source chain, while relayers manage the transaction on the destination chain using native assets, the fee is paid with source native token . To support this process, TOKI collects a relayer gas cost from users. This fee is calculated based on historical gas costs and prices for transactions on the destination chain and does not depend on the transaction amount.

Messaging Fee

TBD