Technical Reference
Protocol fee
A protocol fee is applied to each accepted offer. This section outlines the details of how the fee is collected.
Protocol fee amount
In the current version of the Bakstag OTC market, a 1% fee is applied to the destination token amount and is collected when the offer is accepted. The protocol fee is paid from amount that seller would receive. In future updates, the fee may be reduced to 0%; further details are available in the Next Steps section
When fee is not collected
The protocol fee is collected only when the offer is accepted. If seller decides to cancel the offer before it was accepted by anyone, no fee will be paid.
Examples
To better understand the fee mechanism in the Bakstag Protocol, let’s consider some examples. When a seller creates an offer, no protocol fee is charged immediately. After the offer is created, the following actions may occur:
- Partial Offer Acceptance: The buyer purchases a portion of the source token amount and pays with the destination token amount. In this case, a protocol fee of 1% of the destination token amount is transferred to the treasury, while the remaining 99% goes to the seller's account.
- Offer Cancellation: If the seller cancels the offer, no additional protocol fee is incurred.
Minimum amount to accept the offer
The Bakstag Protocol charges a protocol fee on every accepted offer. Therefore, transaction with a target token amount where 1% would amount to 0 cannot be accepted. For more details, refer to the limitations section.