How does Airtm calculate rates and fees?

Airtm dynamically sets send fees based on your historic activity. By default you will have a send fee with the following logic, however for your specific account this may change. 


Definitions:


Market exchange rate: Market rate of local currency relative to 1 USDC without fees and commissions.


Net exchange rate: Market rate of local currency relative to 1 USDC with fees and commissions.


Service fee: Percentage of the transaction provided to Airtm. 


Escrow fee: Fixed fee provided to Airtm.


Peer variable commission: Percentage of the transaction provided to the acceptor as a commission for accepting the request.


Peer fixed commission: Fixed fee provided to the acceptor as a commission for accepting the request.


Discounted matching fee: Updated variable fee provided to Airtm for updating transaction to a better rate than the user was quoted upon creating request.


Transfer fee: Fixed fee provided to Airtm.


Blockchain fee: Fee charged by cryptocurrency network.


*When inputting the above values using the below equations, if any value is not provided do not include it in the equation.


Equations:


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

Funds to receive = (Funds to send*(1 - service fee - peer variable commission) - escrow fee - peer fixed commission) / 1 USDC market exchange rate


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


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


Funds to send = (Funds to receive / 1 USDC market exchange rate + escrow fee + peer fixed commission) / (1 - service fee - peer variable commission)


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*(1 - service fee) - transfer fee) * 1 USDC market exchange rate


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


For Direct cryptocurrency withdraw funds (withdrawing funds directly):

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


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


For Peer Acceptors of P2P Requests:

For acceptor P2P add funds (adding via accepting a withdraw request):

Acceptor funds to send = requester funds to receive


Acceptor funds to receive = requester funds to send - requester funds to send * service fee - escrow fee


For acceptor P2P withdraw funds (withdrawing via accepting an add request):

Acceptor funds to send = requester funds to receive + requester funds to send * service fee / 1 USDC market exchange rate + escrow fee / 1 AUSDC market exchange rate


Acceptor funds to receive = requester funds to send

Did you find it helpful? Yes No

Send feedback
Sorry we couldn't be helpful. Help us improve this article with your feedback.