Protocol Fee Model (3%) — Execution, Not Pricing

SERIES:
Breadcrumbs (WAproxy)

BREADCRUMB:
03

LANG:
EN

STATUS:
Stable

------------------------------------------------------------
SUMMARY
------------------------------------------------------------

WAproxy applies a protocol fee defined in basis points (BPS).

Default:
FEE_BPS = 300
= 3%

The protocol fee is deducted from amount_sat.
It does not prevent execution.

------------------------------------------------------------
FEE CALCULATION MODEL
------------------------------------------------------------

protocol_fee = amount_sat × FEE_BPS / 10000

receiver_gets = amount_sat - protocol_fee

Example:

amount_sat = 15000
FEE_BPS = 300

protocol_fee = 15000 × 300 / 10000
protocol_fee = 450

receiver_gets = 14550

------------------------------------------------------------
IMPORTANT DISTINCTION
------------------------------------------------------------

Protocol fee is NOT:

• a network fee

• a gas estimate

• a blockchain miner fee

Protocol fee is an execution-layer fee.

Network fee is separate and deducted from wallet balance.

------------------------------------------------------------
EXECUTION CONDITION
------------------------------------------------------------

Transaction requires:

wallet_balance >= amount_sat + safety_margin

Where:

• protocol_fee is inside amount_sat

• network_fee is outside amount_sat

------------------------------------------------------------
WHY FEE IS DEDUCTED FROM amount_sat
------------------------------------------------------------

This model ensures:

• deterministic math

• predictable accounting

• clean fee auditing

• no hidden balance drains

The user defines amount_sat.
WAproxy applies fee deterministically.

------------------------------------------------------------
NO PRICE GUARANTEE
------------------------------------------------------------

WAproxy does not guarantee fiat equivalence.

If 10 USDT ≈ 15000 sat at execution time,
WAproxy does not track future volatility.

It executes what is requested.

------------------------------------------------------------
REVERSE CALCULATION (OPTIONAL)
------------------------------------------------------------

If exact net delivery is required:

amount_sat = desired_net / (1 - 0.03)

Application layer must handle rounding.

WAproxy does not auto-adjust for net targeting.

------------------------------------------------------------
EXECUTION INVARIANTS
------------------------------------------------------------

1. Fee is always basis-point derived.

1. Fee deduction is deterministic.

1. Fee does not block broadcast.

1. Network fee remains external.

1. Integer arithmetic is mandatory.

------------------------------------------------------------
ARCHITECTURAL STATEMENT
------------------------------------------------------------

Protocol fee is execution logic,
not pricing logic.

WAproxy executes deterministic value transport.

------------------------------------------------------------