# Arc Fees Methodology

## 1. Overview

The Fees metric is calculated as the total economic value paid by users to interact with Arc and its native applications, such as StableFX. Transaction gas fees are paid by users in USD Coin to execute transactions on Arc, while trading fees are collected from participants on the StableFX protocol. These fee components are aggregated and normalized to USD to represent the total cost of utilizing Arc's infrastructure.

## 2. Data sources

- **Blockchain events**: `TradeStatusChanged`, `TakerRefunded`, and `MakerRefunded` events, and `recordTrade` and `authorizeTrade` function calls from `FxEscrow` contracts, as well as transaction execution data, covering Arc
- **External data**: End-of-day price feeds for assets traded on StableFX

## 3. Step-by-step calculation

### Component A: Arc gas fee calculation

- **Purpose**: To calculate the total transaction gas fees paid by users on Arc
- **Logic**: Transaction execution data is parsed from Arc. For each transaction, the gas used is multiplied by the effective gas price. Because gas fees on Arc are paid in USD Coin and gas prices are scaled, the product of gas used and gas price is normalized by decimal precision to yield the value directly in USD. These normalized transaction fees are then aggregated on a daily basis.
- **Key fields**: `gas_used`, `gas_price`, `block_timestamp`

### Component B: StableFX trade fee extraction

- **Purpose**: To extract and isolate trading fees collected from settled trades on StableFX
- **Logic**: Trade details are extracted from `recordTrade` and `authorizeTrade` function calls from `FxEscrow` contracts. These trades are matched with `TradeStatusChanged` events from `FxEscrow` contracts to filter for settled trades (where the status is updated to 2). Trades that have been refunded, identified via `TakerRefunded` or `MakerRefunded` events from `FxEscrow` contracts, are excluded. Trades involving system emitter addresses are also filtered out. Taker and maker fees are extracted from the settled trade records, where each fee is denominated in the asset delivered by the respective participant. These fee amounts are normalized by the decimal precision of their respective assets.
- **Key fields**: `taker_fee`, `maker_fee`, `taker_delivered_asset_address`, `maker_delivered_asset_address`, `block_timestamp`

### Component C: USD conversion and final aggregation

- **Purpose**: To convert all fee components to USD and aggregate them into a single daily metric
- **Logic**: The normalized taker and maker fee legs from StableFX are multiplied by their respective end-of-day asset prices to convert them into USD. These USD-denominated trading fees are summed by day. Finally, the daily StableFX trading fees and the daily Arc gas fees are combined and aggregated. The final metric is outputted with daily granularity using UTC day boundaries, where any missing days are filled with zeros.
- **Key fields**: `fees`, `timestamp`

*This methodology was automatically generated by Token Terminal's methodology analyzer.*

Total value users pay to use a protocol (gross fees, user-paid fees).

Fees

Blockchains (L1)

Users deposit funds into Circle account and receive USDC or EUROC at a 1:1 rate.

Circle is a financial technology company that is the principal architect of USDC and EUROC - full-reserve fiat stablecoins that bring US dollar and euro liquidity on-chain.

Circle is a private company registered in the US. Circle's investors include Goldman Sachs, Baidu, and IDG Capital etc.

Arc

Fees

Fees

Chain breakdown