# 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. Operators configure rates, verify the recipient, and inspect collection history from the asset workspace. For the full calculation model, invariants, and audit fields, see [Transaction Fee architecture](/docs/architects/components/token-features/transaction-fee). 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. ## 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. ## Valid rate range and validation [#valid-rate-range-and-validation] Each fee rate is a whole number of basis points from **0 to 10,000**. 100 basis points is 1%, and 10,000 basis points is 100%. The cap matches the on-chain fee contract, so any rate above 100% is rejected before submission. Fractional basis points are not accepted; enter a whole number. The same range applies everywhere you set a rate: the Asset Designer details step at creation time, and the **Set transaction fee rates** sheet when you update rates later. Enter a value outside the range and the field shows an inline message: `Fee must be between 0 and 10,000 basis points (0–100%).`. The form keeps **Continue** disabled until you correct it. The error sits next to the field that caused it, the same way the address fields validate, so you can see which rate to fix. | Entry | Result | | ---------------------------------- | ------------------------------------------------------------------ | | `0` to `10000` (integer) | Accepted. `0` suppresses collection for that operation. | | Above `10000` | Rejected with the inline range message; `Continue` stays disabled. | | A fractional value such as `250.5` | Rejected; basis points must be whole numbers. | ## What you operate [#what-you-operate] After deployment: * **Review configured rates** on the asset detail workspace's transaction-fee capability card. * **Check the fee recipient** before approving rate or recipient changes. The recipient receives fee balances in the asset's own units. * **Inspect collected fees** from the transaction-fee detail view when you need the collection history for reconciliation. * **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 only moves asset units for 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. | | Continue is disabled with an inline range error on a fee field | The entered rate is outside 0–10,000 basis points or is not a whole number. Enter an integer in range; the message clears and Continue re-enables. | ## Read next [#read-next] * [Transaction Fee architecture](/docs/architects/components/token-features/transaction-fee) for the canonical calculation model and audit fields. * [transaction-fee API reference](/docs/api-reference/token-features/transaction-fee) for mutation routes. * [Transaction fee accounting](/docs/operators/token-features/transaction-fee-accounting) for the accounting-only variant. * [Feature constraints](/docs/architects/components/token-features/feature-constraints#mutually-exclusive-rules)