dashed-slug.net › Forums › CoinPayments.net Wallet Adapter extension support › Percentage fee is no longer possible?
Tagged: coinpayments, deposit, fee
- This topic has 3 replies, 2 voices, and was last updated 5 months, 1 week ago by alexg.
October 14, 2022 at 5:16 pm #12202blacklevelParticipant
percentage fee for Coinpayments addapter is no longer possible?
If yes, that’s very sad, because the TX fee only (for withdrawal) is not enough, considering that CoinPayments charges 0,5-1% per depositOctober 17, 2022 at 8:31 am #12208alexgKeymaster
This may be a valid point, but I’m not sure.
To be clear, when a user sends an amount to their deposit address, say 100 coins, CoinPayments retains 0.5% (A fee of 1% applies for tokens.). So the user would receive in this case 99.5 coins in their balance.
The plugin’s ledger would show an incoming deposit of 99.5 and a fee of 0.5 (the fee is paid to CoinPayments, not the WordPress site).
When the user later decides to withdraw the 99.5 coins, they will have to pay a withdrawal fee, which will cover the mining expenses. This fee is not proportional to the amount transacted, so there is no need for it to be a percentage.
With the change to wallets 6.0.0, I have moved the fee settings from the adapter’s settings to the currency settings. The proportional fee was confusing to many users so I didn’t think it was necessary to re-implement it.
Why do you think it’s necessary for the withdrawal fee to be proportional to the amount transacted? I don’t see how the site can lose funds. The “withdrawal fee” should cover the mining fee, which is unrelated to the amount transacted.
Please let me know your reasoning, because implementing a proportional fee is doable, but it’s something that has confused users in the past, and it would require significant effort, so I’m trying to understand the use case.
with regardsOctober 17, 2022 at 12:36 pm #12214blacklevelParticipant
this is my example :):
User deposit 1 BTC.
Coinpayments takes 0.5% fee, and actualy host 0.995 BTC.
User want to withdraw 1 BTC, pay 0.0005 BTC fee and he expects receive 0.9995 BTC.
So finaly 0.995-0.9995= -0.0045 BTC (aprox 100 USD) loss (for service admin).
For tokens, the loss is even greater.
For coins/tokens that are connected directly/node, a proportional fee is not necessary, but for coins/tokens that are connected through a service like Coinpayments, I think that a proportional fee (option to turn on/add) is necessary.October 18, 2022 at 10:13 am #12218alexgKeymaster
In your example, the user cannot expect to withdraw 1 BTC, since their balance is only 0.995 BTC after the deposit fee paid to CoinPayments.
As for the withdrawal fee, again, I still don’t see why it has to be proportional. The withdrawal fee imposed by CoinPayments is a fixed amount, not related to the transacted amount.
Whether the CoinPayments fee is high or low is besides the point. The CoinPayments platform imposes this fee; you and I have no say on it, unfortunately.
I hope to build more adapters that use different alternatives in the future, but some other things must happen beforehand.
In the meantime, if a developer is interested in creating an alternative adapter and sell it, they can do so. I have provided all the necessary information on wallet adapter development and example code, and am happy to answer questions on how to do it.
Please let me know if I am wrong about this.
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