# Transaction fee

Source: https://docs.settlemint.com/docs/operators/token-features/transaction-fee
How operators configure the transaction-fee token feature for on-chain fee collection on mint, burn, and transfer operations.



The transaction-fee token feature deducts a configured fee from each mint, burn, or transfer operation and credits the fee to a configured recipient wallet. The fee is collected on chain at the moment of the operation; the holder receives the net amount, and the recipient receives the deducted fee in the same asset.

The transaction-fee feature is mutually exclusive with [transaction-fee-accounting](/docs/operators/token-features/transaction-fee-accounting). Pick transaction-fee for on-chain collection; pick the accounting variant when the fee should be recorded but settled off chain.

For the architecture reference, see [Transaction fee](/docs/architects/components/token-features/transaction-fee).

## When it attaches [#when-it-attaches]

The mutual-fund template (`system-fund`) attaches transaction-fee. Convertible-note and some custom templates also use it.

## What you configure [#what-you-configure]

In the Asset Designer details step, the wizard surfaces:

| Parameter        | Description                                                                                            |
| ---------------- | ------------------------------------------------------------------------------------------------------ |
| `mintFeeBps`     | Fee on mint operations, in basis points. `100` means 1.00% of the minted amount goes to the recipient. |
| `burnFeeBps`     | Fee on burn operations.                                                                                |
| `transferFeeBps` | Fee on holder-initiated transfers.                                                                     |
| `recipient`      | Wallet that receives the collected fees.                                                               |

Any of the fee rates can be set to zero to suppress fee collection on that operation type.

## What you operate [#what-you-operate]

After deployment:

* **Fees collect automatically** as operations happen. The recipient wallet accrues fee balance directly through the operation.
* **Inspect collected fees** on the asset detail workspace's transaction-fee tab. The tab shows total collected per operation type.
* **Distribute the collected balance** outside DALP if the operating model converts the asset-unit fee to fiat or another asset.

## Operating considerations [#operating-considerations]

* The fee is deducted from the operation amount before the holder receives the net result. A 100-unit mint with a 1% mint fee credits 99 units to the holder and 1 unit to the recipient.
* Per-operation rates are restricted-mutable. Updates apply forward; past operations were charged at the rate active at their time.
* The feature does not move asset units between holders other than the rate-driven deduction. Force-transfers and other administrative operations are not regulated transfers under this module.
* The recipient is restricted-mutable. Updating mid-life requires governance approval.

## Troubleshooting [#troubleshooting]

| What you see                                     | What to check                                                                                                                                 |
| ------------------------------------------------ | --------------------------------------------------------------------------------------------------------------------------------------------- |
| Holder receives less than expected on mint       | Confirm `mintFeeBps` matches the operating-team approval. A 1% fee on 100 units credits 99 units to the holder.                               |
| No fee collected on transfer                     | Confirm `transferFeeBps` is non-zero. The feature collects only when the rate is non-zero for the operation type.                             |
| Need accounting-only fee (no on-chain deduction) | Use [transaction-fee-accounting](/docs/operators/token-features/transaction-fee-accounting) instead. The two features are mutually exclusive. |

## Read next [#read-next]

* [Transaction fee architecture](/docs/architects/components/token-features/transaction-fee)
* [Transaction fee accounting](/docs/operators/token-features/transaction-fee-accounting) — the accounting-only variant.
* [Feature constraints](/docs/architects/components/token-features/feature-constraints#mutually-exclusive-rules)