Fee Structure

The DI Network bridge implements a dynamic fee structure that balances network security, operational costs, and user accessibility while incentivizing optimal liquidity distribution.

Fee Components

Base Bridge Fee

Standard fee for all bridge operations:

• Deposit Fee: 0.1% of transfer amount

• Withdrawal Fee: 0.15% of transfer amount

• Minimum Fee: $1 equivalent in DI tokens

• Maximum Fee: $100 per transaction

Network Gas Fees

Users pay gas fees on both chains:

• Source Chain: Gas for lock/burn transaction

• Destination Chain: Gas for mint/unlock transaction

• Relayer Fee: 10-20% markup on destination gas

Dynamic Fee Calculation

Liquidity-Based Adjustments

Fees adjust based on asset liquidity:

// Fee calculation example
const baseFee = 0.001 // 0.1%
const liquidityRatio = availableLiquidity / totalSupply
const liquidityMultiplier = liquidityRatio < 0.1 ? 2.0 : 1.0
const finalFee = baseFee * liquidityMultiplier

Volume Discounts

Monthly Volume	Discount
$10K - $50K	10%
$50K - $200K	20%
$200K - $1M	30%
$1M+	40%

Asset-Specific Fees

Asset Category	Base Fee	Min Fee	Max Fee
DI Token	0.05%	$0.50	$50
DUSD	0.08%	$0.80	$80
Major Crypto	0.10%	$1.00	$100
Other Tokens	0.15%	$1.50	$150

Fee Payment Options

Payment Methods

Users can pay fees using:

1. Source Asset: Deducted from transfer amount

2. DI Tokens: 20% discount when paying with DI

3. Gas Credits: Pre-purchased credit system

4. Fee Sponsorship: Third-party fee coverage

Payment Examples

// Pay with source asset
await bridge.transfer({
  token: 'USDC',
  amount: '1000',
  feePayment: 'source' // Fee deducted from 1000 USDC
})

// Pay with DI tokens
await bridge.transfer({
  token: 'USDC',
  amount: '1000',
  feePayment: 'DI', // 20% discount applied
  feeToken: 'DI'
})

Fee Distribution

Revenue Allocation

Bridge fees are distributed as follows:

• 40%: DI token stakers

• 25%: Bridge validators and relayers

• 20%: Protocol treasury

• 10%: Liquidity incentives

• 5%: Insurance fund

Staker Rewards

DI token stakers receive proportional fee rewards:

// Calculate staker rewards
const userStake = await staking.getStake(userAddress)
const totalStake = await staking.getTotalStake()
const feeRewards = totalFees * 0.4 * (userStake / totalStake)

Special Fee Programs

Fast Transfer Premium

Expedited transfers with higher fees:

• Standard: 5-15 minutes, normal fees

• Fast: 1-3 minutes, 2x fees

• Instant: <1 minute, 5x fees (limited availability)

Liquidity Incentives

Reduced fees for transfers that improve liquidity balance:

• Rebalancing Bonus: 50% fee reduction

• Low Liquidity Chains: Up to 75% fee reduction

• Large Transfers: Graduated discounts for $100K+ transfers

Fee Estimation

SDK Integration

// Estimate bridge fees
const feeEstimate = await bridge.estimateFees({
  token: 'USDC',
  amount: '1000',
  fromChain: 'ethereum',
  toChain: 'polygon',
  speed: 'standard'
})

// Returns: {
//   bridgeFee: '1.0', // 0.1% of 1000 USDC
//   gasFee: '15.0',   // Estimated gas costs
//   totalFee: '16.0'
// }

Real-time Updates

Fees update based on:

• Network congestion levels

• Asset liquidity ratios

• Validator availability

• Market volatility

Fee Optimization Strategies

For Users

• Batch Transfers: Combine multiple transfers to reduce per-transaction costs

• Off-Peak Timing: Lower fees during low network usage

• DI Token Payments: 20% discount for fee payments in DI

• Volume Discounts: Increase monthly volume for better rates

For Developers

// Optimize transfer timing
const optimalTime = await bridge.getOptimalTransferTime('USDC')
// Returns timestamp when fees are expected to be lowest

// Batch multiple transfers
const batch = await bridge.createBatch([
  { token: 'USDC', amount: '500', to: 'polygon' },
  { token: 'ETH', amount: '1.0', to: 'arbitrum' }
])

Governance and Fee Updates

Parameter Adjustment

Governance can modify:

• Base fee percentages

• Minimum and maximum fee limits

• Volume discount tiers

• Fee distribution ratios

Emergency Fee Controls

• Circuit breakers for excessive fees

• Emergency fee reductions during network issues

• Temporary fee waivers for critical operations

Fee Transparency

Real-time Monitoring

// Get current fee rates
const feeRates = await bridge.getCurrentFeeRates()

// Get fee history
const feeHistory = await bridge.getFeeHistory('USDC', '7d')

Public Dashboards

• Live fee rates across all assets

• Historical fee trends and analytics

• Volume and revenue statistics

• Liquidity-based fee adjustments

Refund Policy

Eligible Scenarios

• Failed transfers due to bridge errors

• Excessive delays beyond SLA

• Technical issues preventing completion

• Governance-approved emergency situations

Refund Process

// Request fee refund
const refund = await bridge.requestRefund({
  transferId: 'failed_transfer_id',
  reason: 'technical_failure',
  evidence: proofOfFailure
})