Explains reasons for fees for minting and burning

Transfers of BTCpx between users will have no cost apart from network fees. There are fees for Minting and Burning of BTCpx due to the listed reasons:

  • Minting Fees: These are fees to deposit .your BTC into custody and mint new BTCpx tokens. When sending BTC from the users wallet to the custodian this will incur Bitcoin Network fees.

  • Redemption Fees: These are fees to withdraw your BTC from the custodian and to burn the BTCpx tokens from the supply. The custodian will charge a Bitcoin Network fee to send the BTC to your wallet address.

  • Custodian and Insurance fees: These fees are charged by the custodian over a period of time to safeguard assets. BTCpx.io fees to mint and redeem fees compensate for these custody charges.

  • Side-chain transaction fees: This fee is predominantly aimed at preventing spam on the side-chain. The fees are shared equally among all institutions running nodes on the side-chain.