Network fees are the amount you pay to have your transaction included in the blockchain network (Each block stores information about transactions like date, hash, recipient addresse etc..). These fees go to the 'miners' who spend resources (computing power and electricity) to process your transactions.
The more congestion you find on the network, the more expensive it can be to fund the 'work' of the miners - Why you'll find Bitcoin and Ethereum have the highest fees.
Fees are necessary however, as without fees users could span the network with transactions causing jams and making it painful if not impossible to use.
So how does this relate to XDEFI:
- Bitcoin network:
On the Bitcoin network, the fees are measured in Satoshis (0.00000001 BTC) per Byte (Information) Sats/b. The more Bytes (Information) of the transaction the more Satoshis you pay. The information in a transaction depends on the number of previously received deposits and not the amount sent. The more received transactions on your address the more expensive your transaction will be.
With XDEFI you have the ability to set custom fees in order to send your transaction more expeditiously in the network:
- Ethereum network:
On the Ethereum network, Gas is the unit that indicates the fee for a transaction.
The Gas Limit is the maximum amount of Gas that you are willing to pay for confirming a transaction.
The 'Gas Price' is the amount of Gwei (1 GWEI = 0.000000001 ETH) that you are willing to spend on each unit of Gas.
The transaction fee is the gas limit multiplied by its price (Gas Price * Gas Limit). For example, if the Gas Limit is 100,000 units and the Gas Price is 10 Gwei, then it means that you are proposing spending 0.001 Ether on the execution of the transaction.