How does Airtm calculate fees?

Definitions:

Exchange rate: Market rate of local currency relative to 1 AirUSD without fees and commissions.
Net exchange rate: Market rate of local currency relative to 1 AirUSD, with fees and commissions.
Peer commission: Percentage of the transaction provided to the acceptor as a commission for accepting the request.
Service fee: Percentage of the transaction provided to Airtm. 

Escrow fee: Fixed fee provided to Airtm.
Transfer fee: Fixed fee provided to Airtm.

Blockchain fee: Fee charged by cryptocurrency network.


Equations

For P2P add funds (adding via submitting a request):

Funds to receive = ((funds to send/market exchange rate) - escrow fee) / (1 + service fee + peer commission)
Funds to send = (funds to receive*(1 + service fee + peer commission) + escrow fee)*market exchange rate)

For P2P withdraw funds (withdrawing via submitting a request):
Funds to receive = ((funds to send - escrow fee)*market exchange rate) / (1 + service fee + peer commission)
Funds to send = ((funds to receive*(1 + service fee + peer commission))/market exchange rate) + escrow fee


For Direct bank add funds (adding directly):

Funds to receive = ((funds to send/market exchange rate) - transfer fee) / (1 + service fee)
Funds to send = (funds to receive*(1 + service fee) + transfer fee)*market exchange rate)


For Direct bank withdraw funds (withdrawing directly):

Funds to receive = ((funds to send - transfer fee)*market exchange rate) / (1 + service fee)
Funds to send = ((funds to receive*(1 + service fee))/market exchange rate) + transfer fee


For Direct cryptocurrency withdraw funds (withdrawing funds directly):

Funds to receive = (funds to send*market exchange rate - blockchain fee) / (1 + service fee)
Funds to send = ((funds to receive*(1 + service fee))/market exchange rate) + blockchain fee


For Direct debit card add funds (adding directly):

Funds to receive = ((funds to send/market exchange rate) - transfer fee) / (1 + service fee)
Funds to send = (funds to receive*(1 + service fee) + transfer fee)*market exchange rate)

J
Joshua is the author of this solution article.

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