# Theoretical Tx Fee Explanation

The costs of the fee model is given below:&#x20;

### Fee Model

$$
gasFee\_{Icp} =2e4\_{Icp} + baseComputationFee\_{Icp} +  specificFunctionCallFee\_{Icp}
$$

**2e4 Base Transfer Fee**

The 2e4 is for a standard 0.0001 ICP fee for transfer from the deposit subaccount to our fee manager + another 0.00001 ICP fee for transfer from the fee manager to the nns minting cycles canister

#### baseComputationFee

This fee is a generic base fee for computation and storage set arbitrarily as a method of preventing cycle drains. It is subject to change but derives from the ICP fee. It currently is:

$$
baseComputationFee =0.0003\_{Icp}
$$

**specificFunctionCallFee**

Currently variable function call fee is based off cycles it costs to call the the exchange rate canister  to get an update the price state of the markets. Future upgrades will include size of the markets and size of the Nat inputted into the function wheter borrowing, liquidating, minting, etc.

However, current values are as specified

***#Borrow, #Liquidate, #Redeem, #RedeemUnderlying, #UpdateAllMarkets***

To call the exchange rate canister, it requires a 12e8 cycles (aka xdr) cost. So each of these functions loo

$$
specificFunctionCallFee\_{Icp} = xdrToIcpConversion(12e8\_{xdr}\*NumberOf Markets)\_{Icp}
$$

***#Mint, #DepositDip, #DepositIcp, #DepositIcrc1, #FixedFee, #WithdrawDip, #WithdrawIcp, #WithdrawIcrc1, #Repay***

None of these functions require any exchange rate canister calling and as such have 0 specificCallFee.&#x20;

&#x20;


---

# Agent Instructions: Querying This Documentation

If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question.

Perform an HTTP GET request on the current page URL with the `ask` query parameter:

```
GET https://finterest.gitbook.io/product-docs/about-the-protocol/theoretical-tx-fee-explanation.md?ask=<question>
```

The question should be specific, self-contained, and written in natural language.
The response will contain a direct answer to the question and relevant excerpts and sources from the documentation.

Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.
