Explains reasons for fees for minting and burning
Transfers of BTCpx between users will have no cost apart from network fees. There are fees for Minting and Burning of BTCpx due to the listed reasons:
- Minting Fees: The fees to deposit your BTC into custody and mint new BTCpx tokens on either MRC20 or ERC20 is 0.1%. Minting does not require gas fees as it is built on Layer 2. When sending BTC from the users wallet to the custodian this will incur Bitcoin Network fees.
- Bridge Fee: This fee is incurred when Minting BTCpx onto the ETH chain in ERC20 protocol due to transactional costs required to confirm the token data from Matic to ETH during a Rollup. This fee is calculated and deducted from the amount of BTCpx received.
- Redemption Fees: The fees to withdraw your BTC from the custodian and to burn the BTCpx tokens from the supply is 0.3%. The custodian will charge a Bitcoin Network fee to send the BTC to your wallet address.
- Custodian and Insurance fees: These fees are charged by the custodian over a period of time to safeguard assets. BTCpx.io fees to mint and redeem fees compensate for these custody charges.
- Side-chain transaction fees: This fee is predominantly used to confirm the Bitcoin blocks and transactions onto the Matic chain but they are not charged to the user.