> ## Documentation Index
> Fetch the complete documentation index at: https://docs.orafi.app/llms.txt
> Use this file to discover all available pages before exploring further.

# Fees & Pricing

> Understand Orafi's transparent, on-chain fee model for payments, payouts, and refunds.

Orafi uses a simple **1% platform fee** that is enforced at the smart-contract level. Fees are deducted automatically before settlement --- no manual calculations required.

***

## Fee overview

| Transaction type | Fee  | Deducted from  | On-chain |
| ---------------- | ---- | -------------- | -------- |
| **Payment**      | 1%   | Payment amount | Yes      |
| **Payout**       | 1%   | Payout amount  | Yes      |
| **Refund**       | Free | ---            | ---      |

<Info>
  All fees are computed using **basis-point integer arithmetic** for precision. Fee transfers happen **atomically** within the same on-chain transaction as the payment or payout.
</Info>

***

## Payment fees

When a customer pays, Orafi automatically:

1. Validates the incoming amount.
2. Calculates the 1% platform fee.
3. Transfers the fee to the Orafi platform wallet.
4. Settles the remaining 99% to the merchant.

**Example:**

| Payment amount | Platform fee (1%) | Merchant receives |
| -------------- | ----------------- | ----------------- |
| 1,000 USDC     | 10 USDC           | 990 USDC          |
| 500 USDC       | 5 USDC            | 495 USDC          |
| 50 USDC        | 0.50 USDC         | 49.50 USDC        |

***

## Payout fees

When a merchant withdraws funds, the same 1% fee applies:

1. The platform validates available balance.
2. Calculates and deducts the 1% fee.
3. Transfers the remaining amount to the destination wallet.

**Example:**

| Payout amount | Platform fee (1%) | Merchant receives |
| ------------- | ----------------- | ----------------- |
| 500 USDC      | 5 USDC            | 495 USDC          |
| 100 USDC      | 1 USDC            | 99 USDC           |

***

## Refund fees

**Refunds are free.** The full refunded amount is returned to the customer with no platform fee deducted. This ensures fair reimbursement and avoids double-charging.

***

## Key details

* Only **USDC** is currently supported as a settlement token.
* Fee changes require a **protocol-level update** and will be announced publicly before taking effect.
* All fee logic is **transparent and deterministic** --- you can verify it on-chain.