Fee Collection & Charges

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Overview

OraFi collects platform charges directly at the smart contract level using a basis-points fee model.
Fees are deducted automatically during payments and payouts before funds reach the merchant. All fee logic is enforced on-chain, making it transparent, deterministic, and non-bypassable.

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Fee Model

• OraFi uses a percentage-based fee system
• Fees are calculated using basis points for accuracy
• The current platform fee is 1% per transaction
• Fees are always deducted before settlement

This ensures consistent and predictable charges across all supported flows.

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Platform Fee Wallet

• All collected fees are transferred directly to a platform-controlled admin wallet
• Fee transfers occur within the same transaction as the payment or payout
• This guarantees atomic execution and prevents partial settlement

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Payment Charges

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How Payments Work

1. A payment request is created for a specific amount
2. The customer completes the payment with the exact required value
3. OraFi automatically:
   • Validates the payment amount
   • Calculates the platform fee
   • Deducts the fee
   • Sends the remaining balance to the merchant

The merchant never needs to manually calculate or send fees.

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Payment Fee Flow

• 1% is deducted from the total payment amount
• The deducted fee is sent to the platform wallet
• The remaining 99% is sent to the merchant
• The payment context is finalized after settlement

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Example

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Payout Charges

Payouts occur when funds are withdrawn from a platform-controlled balance to a merchant’s external wallet.

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How Payouts Work

1. A payout request is initiated for a specified amount
2. The platform validates available balance
3. OraFi automatically:
   • Calculates the platform fee
   • Deducts the fee
   • Sends the remaining amount to the destination wallet

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Payout Fee Flow

• 1% is deducted from the payout amount
• The fee is sent to the platform wallet
• The remaining balance is transferred to the merchant

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Example

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Refund Charges

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Refund Behavior

• Refunds are not charged
• The full refunded amount is returned to the customer
• No platform fee is deducted during refunds

This ensures fair customer reimbursement and avoids double-charging.

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Summary

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Notes

• All fees are calculated using precise integer arithmetic
• Only USDC is currently supported
• Any change to the fee rate requires a protocol update and will be publicly announced