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Fees on the Ethereum and Polygon networks
Fees on the Ethereum and Polygon networks

Maximum fees explained

Tom avatar
Written by Tom
Updated over a week ago

When you perform a transaction on the Ethereum or the Polygon network (to send some ethers, tokens or NFTs), you need to pay fees to the Ethereum or Polygon network so it can

validate your transaction.

👉 Those fees are never paid to Spot. They are paid to the Ethereum or Polygon network.


What does the max label means when sending a transaction?

On the Ethereum and Polygon network, you will see a max label next to the network fees.

It means that those are the maximum fees you could pay for this transaction - fees will never exceed that amount and can be lower than that.

These are the maximum fees you will pay when sending this transaction.


How does it work?

Your Spot wallet is optimized to take a mechanism called Ethereum/Polygon priority fees (that was implemented in the so-called EIP-1559) into consideration when preparing your transactions to be broadcast. This system improves the fee estimation.

Fees are composed of three parameters:

  • Base fee: computed automatically, based on the previous blocks on the Ethereum network, and that will be adjusted on the next block.

  • Priority fee: to enable transactions to be validated faster when it is needed.

  • Maximum fee: expressing the maximum you are willing to pay for the transaction — that can be useful if the network is becoming congested!

Spot optimizes the two latter parameters to help your transaction be validated as soon as possible with a low amount of fees.

👉 If the actual fees are less than the max fee amount, you will only be charged the actual amount by the Ethereum/Polygon network.

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