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

SERIES:
Breadcrumbs (WAproxy)

BREADCRUMB:
03

LANG:
EN

STATUS:
Stable

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SUMMARY
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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.

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FEE CALCULATION MODEL
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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

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IMPORTANT DISTINCTION
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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.

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EXECUTION CONDITION
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Transaction requires:

wallet_balance >= amount_sat + safety_margin

Where:
- protocol_fee is inside amount_sat
- network_fee is outside amount_sat

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WHY FEE IS DEDUCTED FROM amount_sat
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This model ensures:

- deterministic math
- predictable accounting
- clean fee auditing
- no hidden balance drains

The user defines amount_sat.
WAproxy applies fee deterministically.

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NO PRICE GUARANTEE
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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.

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REVERSE CALCULATION (OPTIONAL)
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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.

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EXECUTION INVARIANTS
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1. Fee is always basis-point derived.
2. Fee deduction is deterministic.
3. Fee does not block broadcast.
4. Network fee remains external.
5. Integer arithmetic is mandatory.

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ARCHITECTURAL STATEMENT
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Protocol fee is execution logic,
not pricing logic.

WAproxy executes deterministic value transport.

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