# Fees

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The Fee Model is a flexible system for calculating transaction fees in the blockchain network. It supports tiered fee structures with both fixed fees and percentage-based fees, allowing for sophisticated fee policies that can adapt to different transaction amounts and use cases.
{% endhint %}

#### Fee Types

The system supports two types of fees:

1. Fixed Fee: A constant fee amount regardless of transaction value
2. Percentage Fee: A fee calculated as a percentage of the transaction amount (specified in base points, where 100 base points equals 1%)

#### Tiered Structure

Fees are organized in tiers based on transaction amounts:

* Each tier has a range defined by minimum and maximum transaction values
* Different fee types and rates can be applied to different tiers
* Tiers must cover the entire range of possible transaction amounts without gaps or overlaps

#### Active and Pending Models

The FeeModel maintains two sets of fee configurations:

* Active: The currently applied fee model
* Pending: A staged fee model that can be activated later

This dual-model approach enables scheduled fee changes and governance-controlled fee updates.


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