# Transaction Fee

Transaction fees in the Pactus blockchain are calculated using a percentage-based fee model.
The fee is a percentage of the transferred amount, within a minimum and maximum range.
The percentage, minimum fee, and maximum fee parameters are part of the blockchain
consensus parameters.

The formula to calculate the transaction fee is as follows:

\[\begin{align*}
fee = amount \times percentage \\
\\
fee =
\begin{cases}
& fee_{min} & \textbf{ if } \ fee < fee_{min} \\
& \\
& fee_{max} & \textbf{ if } \ fee > fee_{max} \\
& \\
& fee & \textbf{otherwise}
\end{cases}
\end{align*}\]

## Examples

Currently, the fee fraction or percentage is set to 0.01%, the minimum fee is set to 0.000,001 coin,
and the maximum fee is set to 0.001 coin.

- If Alice wants to transfer 2 coins to Bob, she needs to pay 0.000,2 coins as transaction fee.
- If Alice wants to transfer 0.000,2 coins to Bob, she needs to pay 0.000,001 coins as transaction fee.
- If Alice wants to transfer 20 coins to Bob, she needs to pay 0.001 coins as transaction fee.