Using Redacted
Fees
Updated 2 October 20264 min read
Before you confirm any action, the interface shows a single Privacy fee, and the contract charges exactly the amount you see.
What the Privacy fee covers
The Privacy fee bundles up to two things into the quote. The protocol fee is a small percentage that the contracts collect on the coins an action from Spending attaches, and it funds the protocol, which with the node network means paying the nodes that carry your actions and the treasury (see Tokenomics). The relayer reimbursement is optional and covers the cost of having a relayer carry your transaction and pay the network gas, so your wallet never has to. At launch the nodes sponsor every action, so the reimbursement is zero and the quote is the protocol fee alone.
The products you use have fees of their own, such as spreads and borrow rates, and the networks underneath them have costs of their own. Those belong to the products and the networks, and Redacted doesn't change them.
Where fees apply
| Action | Fee |
|---|---|
| Deposit into the Reserve | Free, and every unit you deposit becomes Reserve value |
| Reserve to Spending | Free |
| Spending to Reserve | Free, so you can bring funds back to rest whenever you like |
| Withdraw to a public address | Free at launch, with the withdrawal fee set to 0% |
| An action from Spending that attaches coins, such as a swap, an order, staking, lending, a vault or liquidity deposit, or a direct send to another address | The protocol fee on each coin the action attaches |
| An action from Spending that attaches no coins, such as claiming rewards, cancelling an order or editing an order without adding funds | No Redacted fee |
| Adding funds to an existing order or position | The protocol fee on the added coins |
| Exiting with a receipt token, such as a liquidity or staking receipt | The protocol fee on the receipt token, taken in that token |
| Funding an order or strategy that runs on its own | The protocol fee on the coins the funding action attaches |
Moving funds between your Reserve and Spending costs nothing, so resting funds in the Reserve, the habit that gives you the most privacy, never costs you anything. The deposit from your public wallet is an ordinary transaction on that network, and Redacted adds no fee to it. If governance ever sets a withdrawal fee, it comes out of the amount you withdraw and follows the same notice period as every other fee change.
How the protocol fee works
The protocol fee is worked out for each token separately from the coins an action attaches, and it rounds up to the next smallest unit, so every charged token pays at least one unit. Your Spending account pays it in addition to the amount the action sends, so the fee never reduces what the product receives.
Every action that attaches coins pays the fee on them, whether it is the first action of an order or a later one. Actions that attach nothing, such as claiming, cancelling and editing without adding funds, carry no Redacted fee. Products can charge fees of their own on top, and those belong to the product.
When you fund an order or strategy that runs on its own, the funding action pays the protocol fee on the coins it attaches. After that the product runs it by itself, and Redacted charges nothing for those runs. Adding more funds later is another funded action and pays the fee on the added coins.
Exits that hand a receipt token back to its product pay the fee on the receipt token, in that token, like any other coin an action attaches.
The relayer reimbursement
A reimbursement can only be added to an action that attaches coins. Deposits, withdrawals, moves between the Reserve and Spending, and actions that attach nothing never carry one. When an action does carry one, you see it in the quote, your proof seals the exact amount, and the contract caps it on-chain.
Fee caps
The contract applies the fee caps on-chain. The protocol fee and the withdrawal fee are each capped at 10%, and your proof seals the exact fee amounts, so no relayer, interface or operator can charge you more than you authorized, because a changed fee breaks the proof. Token holders decide fee changes (the DAO does until the token relaunch) through an on-chain process with a notice period of at least a day, so nothing can change silently.
Sponsorship
Creating your private account costs you nothing. Account registration is sponsored, so new users unlock Private Mode without sending anything first.
See Relayer for how submission works and Tokenomics for where protocol fees go.